How to claim up to £125 tax back if you have to work from home for just one day due to Covid

WORKERS may be able to claim up to £125 in tax back if they have to work from home for just one day due to the coronavirus crisis.

The tax relief scheme is an aim to help employees claim back any additional expenses, such as energy bills.

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Workers may be able to claim up to £125 tax back if you have to work from home for just one day[/caption]

Under the scheme, your tax code is adjusted so you’re not paying as much tax.

The support in itself is not new, but workers are being reminded about it as most of the UK has gone back into lockdown.

Earlier this week, Boris Johnson ordered people in England to stay at home – and everyone who can do their jobs from home must now do so.

Meanwhile, Northern Ireland, Scotland and Wales have also gone into lockdown again from various dates in December and January.

HMRC is accepting claims for the whole tax year due to the pandemic, and it launched an online tool in October to help you do it.

What can I claim tax relief on?

THERE are certain things that you can claim tax on under HMRC rules. They include the following:

  • Expenses for working from home
  • Repairing or replacing small tools needed to do their job (for example, scissors or an electric drill)
  • Cleaning, repairing or replacing specialist clothing (for example, a branded uniform or safety boots)
  • Business mileage (not commuting)
  • Travel and overnight expenses
  • Professional fees and subscriptions

Since then, Martin Lewis has also urged people working from home, even if for one day only, to claim the tax back.

The crucial point is, however, that your employer must have required or asked you to work from home to claim.

This doesn’t apply if it’s something you’ve decided on your own whim.

The Sun has asked HMRC how many workers have claimed the tax relief so far, and we’ll update this article once we hear back.

We explain what you can claim below and how to go about it.

How much can I claim?

This is a little bit complicated, but essentially your employer can effectively pay you £6 a week extra tax-free to cover expenses.

But with many firms struggling right now, it’s more likely you’ll instead claim tax relief on the £6 a week.

If you claim the tax relief, the exact reduction to your tax bill depends on your tax rate and it’s the highest rate of tax you pay that’s used.

For those paying the standard tax rate of 20%, you would get £1.20 a week in tax relief.

While for people who pay tax at the higher rate of 40%, you’d get £2.40 a week.

Additional rate tax payers who pay 45% will get £2.70 a week.

So claim for the entire 2020/21 tax year and that’s tax relief of £62.40 for basic rate taxpayers, £124.80 for higher rate tax payers, and £140.40 for additional rate tax payers.

How do I claim the cash?

If you haven’t already submitted a claim for this tax year (April 6, 2020 to April 5, 2021), HMRC has an online tool to help you claim it in one go.

Once the application has been approved, the online portal will adjust your tax code for the 2020 to 2021 tax year.

You will then receive the tax relief directly through your salary and will continue to receive the adjustment until April 5, 2021.

This means you won’t get a one off payment, instead it will be included as part of your weekly or monthly payments from your employer.

You’ll be able to see the money on your payslips.

Workers can also use the tool to claim going back the past four tax years.

In this case you’ll receive a lump sum payment instead of a monthly salary boost.

In other tax news, the deadline to submit self assessment tax returns is in a few weeks – and millions are Brits yet to file theirs.

What you'll need to make a working from home tax claim

YOU'LL need the following basic information to hand before you make tax claim via HMRC:

  • Something to prove your identity – this could be a passport, driving licence, or you can answer various questions based on your credit file
  • A P60 or payslip from July 2020 onwards
  • National insurance number
  • Your Government Gateway user ID and password or you can create a user ID if you do not already have one.


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