Working from home tax relief: How to claim up to £125 | Personal Finance | Finance
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On BBC Money Box today, Andrew Stevenson tweeted a question to the team, asking them if he has to claim his working from home tax rebate? Andrew already claimed this already last year and wondered if he had to do it again this year.
Reporter Chris Flynn confirmed that he would have to claim it again this year.
Many Britons working from home are urged to see if they can claim this tax relief as it can help with the rising cost of living and energy bill crisis as millions of household finances will be squeezed from April.
Mr Flynn said: “This working from home tax relief is to help with things that you have had to pay for like energy and water, that you wouldn’t have had to in a workplace.
“If you’ve worked from home even for one day in a tax year you can claim relief worth almost £60 off your tax bill for the year if you pay basic rate tax.
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“It’s worth twice as much if you pay higher rate tax.”
For those people who find that working from home costs them a bit more than that, they may be able to claim back the exact amount they have had to pay.
Mr Flynn continued: “People can claim tax relief for the exact amount of extra costs you’ve incurred but you will have to provide receipts.
“There were reports the rules could be changed because it was costing the Treasury too much.
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On his website MoneySavingExpert, Martin Lewis wrote: “These changes are all, of course, driven by the pandemic, which has seen many firms have to close workplaces, sometimes several times, meaning millions of UK staff have been required to work from home temporarily.
“HMRC has specifically confirmed to me that claims from employees working at home due to coronavirus measures, if their usual workplace is closed, count for this relief.
“The same also applies if you have to work from home because you’ve been told to self-isolate by NHS Test and Trace, or because you’re self-isolating having been pinged by the NHS app.”
So far, it’s thought that three million people have put in a claim for working from home but many more could benefit.
The rebate is to help home workers with higher water, telephone and energy bills associated with working from home.
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