Umair
For the millions of people who worked at home at the start of the Covid pandemic due to government restrictions, an important deadline is fast approaching, Martin Lewis has warned.
The Money Saving Expert warned in the latest edition of his newsletter that it is your “last chance” to get what you’re owed, and shared a guide on how to do it.
It has always been possible to claim tax relief for the added cost of working from home, such as water, heat and electricity.
But for 2020/21 and 2021/22 tax years, the rules were extended to include those who had to work from home due to the pandemic restrictions.
As with other tax allowances, workers can only claim back four tax years before the current one – that means Saturday is the last chance.
To claim the tax relief, workers will need to prove they had extra costs as a result of working from home.
In addition, they will need to show that the area they lived in was under lockdown, that their workplace was closed, that they were told to isolate by NHS Test and Trace or that they were self-isolating after being pinged by the NHS app.
However, those who chose to work at home during that time – even if it was for reasons related to the pandemic – can’t claim the tax back.
Also, if their employer covered the additional costs of working from home, then they are not eligible.
How much money those who worked at home can claim depends on their income tax band. A rate of £6 a week is available to claim in tax relief, and no receipts are needed to apply for this.
As a result, this equates to a gain of £1.20 a week for a 20 per cent rate taxpayer, or £62.40 a year. For a 10 per cent rate taxpayer, it’s £2.40 a week or £124.80 a year. For those that pay 45 per cent tax, it’s £2.70 a week or £140.40 a year.
The form to apply for the tax relief is on the HMRC website.
