Money Saving Expert Martin Lewis is urging hard-working Brits to apply for tax relief if they've worked from home this year.
The finance expert has discovered that people are able to claim a full year's tax relief - worth £125 - if they've been told to work from home for just a single day.
"If you've been required to work from home even for ONE DAY since 6 April… you can now legitimately claim tax relief for any extra costs for the WHOLE YEAR – worth £60 or £125," Martin Tweeted.
According to the Mirror, it was such a good offer, Martin had to double check.
"When we first saw it, we couldn't quite believe it meant you'd automatically get the whole tax year's claim, regardless of how long you were at home for," he explained in a blog post on MoneySavingExpert.com.
So he double checked, then triple checked, then called HMRC to make sure.
Spoiler: it was definitely true.
But people are not eligible to claim tax relief if they choose to work from home - you have to have been told to by your boss.
The money is designed to help with extra costs associated with home working such as heating and a broadband upgrade.
Bosses are allowd to pay you £6 a month extra - tax free - to cover this.
But even employees who have not received the working from home expenses payment directly from their employer can apply to receive the tax relief from HMRC.
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.
How to claim £125 for working from home
People can find out more and make a claim at gov.uk/tax-relief-for-employees/working-at-home.
It takes less than 2 minutes to find out if you're eligible for tax back.
To claim the money, you need a Government Gateway user ID and password.
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
Once an application has been approved, the online portal adjusts the applicant's tax code for the 2020/21 tax year.
The you'll receive the tax relief directly through your salary.
HMRC is also reminding employees such as healthcare workers and care home staff, that they can also claim tax relief on work-related expenses, including cleaning uniforms.
The extra money can help thousands of workers whose efforts are helping save lives during the pandemic.
Employees who clean, replace or repair uniform or tools, or pay fees and subscriptions for their work, can apply online directly to HMRC and see if they are eligible for tax relief on work expenses.
The taxman also said that in 2018/19, two-thirds of those claiming for expenses used an agent, rather than using HMRC directly. They will have had to pay fees or commission.
But people who are paid through Pay As You Earn (PAYE) can claim directly from HMRC and keep all the money.
HMRC is encouraging customers claiming tax relief for working from home to apply directly, and said agents will not be able to use the new service to apply for the relief on a customer's behalf.
This means customers will receive 100% of the tax relief due.
