If you were asked to work from home during the coronavirus pandemic, you can apply for tax breaks up to £ 125 from the government.
A refund is available to anyone who has worked at home for at least one day since April 6, 2020, meaning millions can claim the money.
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Anyone asked to work from the hoe because of coronavirus can ask for up to £ 125 in free government moneyPhoto credit: Getty Images – Getty
It is intended to help the British cover the additional costs of remote work such as higher heating or water bills, business calls or a new broadband connection.
Because the discount is for the tax year, the April 5th deadline to apply for your money is less than a month away.
Once you’ve applied, the money will be automatically refunded on your next paycheck and your tax code will be temporarily changed to reflect this.
To claim that you have been directed to work from home by your employer.
This means that if the store stays open and you are allowed to go in, you can’t get the money, but you decided against it.
Some companies have organized the payments themselves and pay employees an additional £ 6 per week tax free.
However, if you did not receive the refund through your workplace, you can request the money directly from HMRC.
How much will i get?
If you are making claims for yourself, the amount will depend on how much tax you typically pay.
From the tax year April 6, 2020 to April 5, 2021, you can claim tax breaks of £ 6 per week.
If you’re a property taxpayer, the relief is 20% which means you get £ 1.20 per week.
Over the course of the year, this adds up to £ 62.40 for anyone making between £ 12,500 and £ 50,000.
If you pay a higher tax your relief is 40% or £ 2.40 per week. Over the year, that adds up to £ 124.80. This is available to anyone making more than £ 50,000 a year.
If your work from home cost is more than the weekly allowance, you can claim back the exact cost, but you will need supporting evidence such as receipts, contracts or invoices.
You cannot claim costs that stay the same whether you work from home or in an office, such as B. Mortgage interest, rent or council tax.
You may also be able to claim for the previous tax year, especially if you were asked to work from home when the first lockdown began in March.
The tax break has been applied at a lower rate of £ 4 per week in previous years, meaning the refund is £ 41.60 for base payers and £ 83.20 for higher rate payers.
How can I claim the discount?
Most people can make claims quickly and easily through a new government portal.
You need a Government Gateway user ID and password, which you can create online in less than 10 minutes.
Make sure you have your Social Security number and a recent pay slip (P60) or a valid UK passport on hand.
If you normally file a self-assessment tax return, you will need to file it through this process.
What if i miss the deadline?
An HMRC spokeswoman told the Sun that you can backdate claims for the last five years so you don’t have to panic if you miss the deadline.
If you apply after April 6th, you will receive the money not as part of your salary, but as a lump sum.
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