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You Can Claim Up To £125 Tax Relief If You Had To Work Just One Day From Home During Lockdown

You Can Claim Up To £125 Tax Relief If You Had To Work Just One Day From Home During Lockdown

With the coronavirus pandemic showing no signs of slowing, millions of workers have now been working from home for over seven months.

But, did you know that even if you've only been required to work from home for one day this year then you're still technically eligible to claim up to £125 in tax relief?

The new loophole was discovered by Money Saving Expert, Martin Lewis, who contacted HMRC directly to find out just how generous their support was for those who have been without an office.

The GOV.UK website states: "You may be able to claim tax relief for additional household costs if you have to work at home on a regular basis, either for all or part of the week.

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If you were required to work from home this year then listen up! (Credit: Unsplash)
If you were required to work from home this year then listen up! (Credit: Unsplash)

But Martin Lewis confirmed that the term 'regularly' was actually a loose one, and even if you've been required to take one day out of the office, you can technically reap the benefits of this tax relief.

HMRC confirmed to him that employees can claim tax relief based on the rate of tax they pay - which works out at £62 a year for basic rate taxpayers and £124 a year at the higher rate - if they'd worked one day from home or more.

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The tax relief doesn't count if you've worked from home purely by choice.

The additional costs this money covers includes heating, home contents insurance, business calls, metered water bills and a new broadband connection, if necessary.

It doesn't cover costs that would stay the same regardless, such as council tax, rent or mortgage interest.

After Martin's gentle nudge, HMRC even launched an online portal on October 1st, to make it easier for people to claim this money back if they haven't already made a claim for this tax year.

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HMRC have said you can claim tax relief starting from the date you began working from home.

You can either claim:

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  • £6 a week starting from April 6th, (for previous tax years the rate is £4 a week). For this, you will not any evidence of your extra costs.
  • OR the exact amount of extra costs if they surpass this weekly amount (but only if you have evidence such as receipts, contracts or relevant bills).

Those paying the tax rate 20 per cent (which is standard) can claim £1.20 per week in tax from that £6 cost, meanwhile those paying the higher tax rate of 40 per cent will be able to claim £2.40 per week.

If you pay 45 per cent additional rate tax you can claim back as much as £2.70 a week.

Could your WFH setup be costing you? (Credit: Pexels)
Could your WFH setup be costing you? (Credit: Pexels)
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The money won't arrive in the form of a cheque, so, don't expect an immediate payout.

Instead, your tax code will simply be altered for the 2020 to 2021 tax year, which means the amount of tax your employer will be informed to take off of your pay slip will reduce up until March 2021.

Essentially, this means more money in your pocket - although, of course, the idea is that this cash helps towards your WFH expenses...

If you've already made a claim for the weeks you've worked from home, Martin explains you can still get your money back. He's detailed how to do that using a P87 form on his blog, here.

Featured Image Credit: PA

Topics: martin lewis, Money, Coronavirus, Covid-19

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Joanna Freedman

Joanna is a journalist at Tyla with a particular interest in highlighting women's issues and telling inspiring first person stories. She's also their resident foodie, and loves covering exciting new beauty launches, too. Contact her at [email protected]