If the pandemic changed how and where you worked and you're now hauled up in your home office, then there is tax relief to be claimed. If you haven't done so already, there is still the opportunity to claim cash back for the time you worked or are still working from home.
Consumer champion, Martin Lewis took to his ITV show last week (Monday, 24 October) to share his quick-fire money saving tips. One of the items that he highlighted was that it was not too late to claim tax relief for working from home.
On the show, titled The Martin Lewis Money Show, the financial guru said that it was still possible to claim tax relief if you worked from home during the previous two years - and you can claim for a whole year even if you only worked from home for one day. The relief adds up to £6 per week to help cover extra costs such as increases in electricity and heating.
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During the segments, Martin explained that in October 2020, HM Revenue & Customs (HMRC) launched an online tool to help people claim tax relief during the pandemic.
So how do you qualify. Well, first of all you must have been required to work from home not just chosen to work from home. If that's you, then the amount you get back will depend on the rate of tax you pay.
As an example, the government website says: "If you pay the 20% basic rate of tax and claim tax relief on £6 a week, you would get £1.20 per week in tax relief (20% of £6)."
Basic rate tax payers, so those earning between £12,500 and £50,000, will get 20%, so that's £1.20 per week, which will bag you £62.40 over a year.
For higher rate tax payers, those on £50,000 or more a year, the relief will be worth 40% or £2.40 per week. This totals £124.80 year.
The rules have always been in place but claiming was have easier during the pandemic. However, they have now been tightened again, so you may not be eligible to claim for 2022-23 tax year. But, if you didn't claim the tax relief, but did work from home in 2020 or 2021, you can still do it now.
The Government created an online tool to help you check if you can claim and how to get the working from home tax back. The government tool and further information can be found here.
You'll need a Government Gateway user ID and password to claim using the online tool. If you don't already have one, creating a Government Gateway ID usually takes about 10 minutes. It works best if you have:
- your National Insurance number
- a recent payslip or P60 or a valid UK passport
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