22 October 2020 22:34
Martin Lewis has divulged a new tax relief deal that has been revealed by gov.uk for those who have been working from home. On his Thursday evening show, The Martin Lewis Money Show Live, the money saving expert revealed to viewers that they could claim a year's worth of tax relief if they have worked from home for just one day throughout the coronavirus pandemic lockdown. "If you're required to work from home and you have extra expenses for doing so and you're an employee you can claim the working from home tax relief," says Martin. Those working as employees of a company can save from £60 in tax for the whole year and up to £125, depending on what your tax code is, simply from working from home for just one day. Martin Lewis HMRC advice: tax relief for working from home While some have already been claiming tax relief for working from home throughout the last few months, Martin Lewis has revealed that the HMRC has now simplified the system due to the high demand it has been seeing.
You can now claim a year's worth of tax relief if you have been required to work from home for just one day since the 6th April and it has led to higher expenses at home. Who can claim tax relief for working from home? Anyone who is an employee of a company and who has been required to work from home for at least one day since 6th April can now claim a year's worth of tax relief, provided they've had additional expenses as a result of working from home. It doesn't matter what your job is or what industry you work in, if you have been required throughout the lockdown period, but have not been provided a place of work by your employer (i.e. your office has been closed or employees have been asked not to come in), then you are eligible to claim the tax relief. This even includes anybody who has been required to work from home due to an obligation to shield, as Martin advises that the service is also available if "the government required you to work from home".
To claim the year's worth of tax relief from the HMRC the criteria are: You have been required by either your employer or the government to work from home for at least one day, and not just done so out of choice How much money can the tax relief save you? You can claim a rate of £6 per week with the new HMRC microservice, which means that you can claim tax relief on £6 of your weekly earnings. For those on a basic 20% taxpayer rate, you will save £1.20 per week, which equates to £62.40 per year. Or those on a higher 40% taxpayer rate will save £2.40 per week, equating to £124.80. If you think that your surplus costs from working from home come to more than £6 per week, you can claim more, however this will require you to provide detailed evidence and can be a very long and drawn-out process. How to claim HMRC tax relief for working from home You can claim HMRC's tax relief for working from home through their new microservice on gov.uk. Martin advises that you only have to claim once to get the year's worth of tax relief, even if you have had a period in between work-from-home stints where you have worked from your office. "We recognise that the working-from-home situation is very fluid this year, so we're accepting claims for the full year's expenses," the HMRC told Martin. "That includes even if people have only worked from home for some of the year, to avoid needing to contact us if you have to work from home again." Millions of people who are working from home can get £125 tax relief from the government to cover broadband, energy bills and more, HMRC has confirmed. The tax break is designed to cover the extra costs associated with working from home, rather than the office. The money could previously be claimed from your employer - however this week, the government made it even easier to claim it back. You can now claim it in minutes from HMRC online - and you'll get the £125 payment even if you've only worked from home for one day since April. "There's been a huge change," Martin Lewis said on the ITV Money Show this week. "This is for employees that are required to work from home and it can help pay for expenses such as heating. "From now on you can get a year's tax relief even if you have only worked from home one day since April 6." And now he's explained that it also includes shielders who have had to work from home due to government coronavirus rules. "Does HMRC's tax relief include shielders?" one viewer wrote in. "If your employer or the government requires you to work from home, you can claim the support. "If you have chosen to work from home, you cannot claim it," Martin explained. The tax relief only applies if you've been told to work from home by your boss or government guidance. The money is designed to help with the extra costs associated with home working such as heating and a broadband upgrade. Taxpayers who are eligible can claim tax relief based on the rate at which they pay tax. For example, if an employed worker pays the 20% basic rate of tax and claims tax relief on £6 a week, they would receive £1.20 a week in tax relief (20% of £6 a week) towards the cost of their household bills. You can claim £2.40 a week if you pay the higher 40% tax rate. People can find out more and make a claim directly at gov.uk/tax-relief-for-employees/working-at-home. To claim the money, you need a Government Gateway user ID and password.