Millions of people who have worked from home since the start of the new tax-year could be eligible for a second £125 tax refund from HMRC.
That's in the form of the 'work from home' tax rebate which applies to anyone who has been asked to carry out their job from home for even one day since April 6, 2021.
It's part of a wider HMRC tax rule that offers financial relief - worth up to the value of £125 - towards home-working expenses such as bills, lunches and other extra costs.
Even better, you only need to have worked one day from home to claim the refund - meaning millions of people could be eligible.
The money can be used to pay for items such as office equipment, stationary and even printer paper.
If you are a sole-trader, you can claim the money through 'work expenses' on your next self-assessment.
If you're employed, you can claim the rebate from your employer or HMRC directly.
"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," consumer expert Martin Lewis previously warned on the ITV Money Show.
But it only applies if you've been told to work from home by your employer, ie not out of choice.
The money is designed to help with 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.
How to claim your tax refund
Workers 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'll 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
You'll then 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 coronavirus 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.
