Martin Lewis issues reminder for people working from home to claim £125 back

Financial expert Martin Lewis has issued a reminder for those working from home that they can claim £125 back.

Anyone who has worked from home because of the pandemic can claim money back, even if it was just for one day.

According to a blog post on Money Saving Expert this week, nearly 2 million Brits have already claimed the money.

Figures from HMRC show 1.76million people have used the online tool since the coronavirus crisis started.

Thousands more people have also claimed money back this month.

The payment is designed to help people extra expense of working from home, such as heating and lighting your home.

The support has always existed, but due to the lockdowns forcing millions more people to work from home, the government has made it easier to claim the payment.

The online tool was introduced back in October.

Instead of having to work out the number of days or weeks you've worked from home for, you can get it for the whole year, even if it you just had to work from home for one day.

How much can you claim?

The amount of money you can claim depends on your tax rate and your employer must have required you to work from home to make a claim.

Your employer can effectively pay you £6 a week extra tax-free to cover expenses.

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

Those people paying the standard level of tax of 20% can get £1.20 a week in tax relief.

People who pay tax at the higher rate of 40% get £2.40 a week.

So if you claim for the entire 2020/21 tax year, that's tax relief of:

  • £62.40 for basic rate taxpayers
  • £124.80 for higher rate tax payers
  • £140.40 for additional rate tax payers

Those claiming don't get cash pay out though. Instead your tax code is changed so you pay less tax equivalent to the amount of tax relief you get.

How do I claim the payment?

Those who haven't already submitted a claim for this tax year (April 6, 2020 to April 5, 2021), can use HRMC's online tool to 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.

What can tax relief be claimed on?

According to HMRC rules, there are certain things than you can claim tax on. These are:

  • Working from home expenses
  • Repairing or replacing tools needed for your job (such as drills or scissors)
  • Business mileage (not commuting)
  • Cleaning, repairing or replacing specialist clothing (such as branded uniform or safety boots)
  • Travel and overnight expenses
  • Professional fees and subscriptions

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 will be able to see the money on your payslips.

Workers can also use the tool to make claims going back the past four tax years if at any point they've been required to work from home.

If this is the case, you'll receive a lump sum payment instead of a monthly salary boost.

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