Martin Lewis has our backs once more as he delivers another great tip on how to claim a year’s worth of tax relief if you’ve been working from home due to coronavirus, even just for a day.
It’s all to do with claiming expenses, despite working from home – and you could get back as much as £125.
This boils down to claiming extra costs such as heating and electricity, which are difficult to measure but will definitely be higher thanks to having the lights and radiators on all day.
You can claim a rate of £6 per week by claiming tax relief.
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If your employer won’t pay expenses for your extra home working costs but you have them, then you can ask for the amount to be deducted from your taxable income.
Tax relief of £6 a week means a gain of £1.20 a week for a basic 20 per cent rate taxpayer and £2.40 a week for a higher 40 per cent rate taxpayer.
If you think you have higher increased costs than £6 a week there is a possibility to claim more, providing you have evidence of these increases based on the fact you’re working from home.
How to claim the tax relief
In October 2020, HMRC set up: working-from-home microservice that will automatically apply the whole 2020/21 tax year’s relief via your tax code – a doddle.
Anyone making a claim for this tax year who hasn’t already put in a claim can use it.
You should see a positive change to your payslip after this, as less tax will be taken off each month for the next tax year.
For couples who work from home, in the same property, it would be fair to say that individual costs have increased specifically, so you can claim up to £6 per person.
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