Martin Lewis encourages those who have worked from home to apply for tax breaks.
The Co-Founder of Money Saving Expert has stated that anyone who has worked at home due to coronavirus, even if only for one day, can now apply for a year of tax breaks through HMRC.
It is part of a system change by HMRC in October 2020. This means that anyone who has had higher costs due to working from home for at least one day is eligible for a tax break of £ 6 per week.
This is usually provided to cover additional household expenses if you’ve been working at home regularly, either for all or part of the week – and now for those who do because of the pandemic.
Martin announced that a system change now means that employees recently forced to work from home will be entitled to the full annual tax entitlement “regardless of how long they were home.”
The 48-year-old admitted he was “skeptical” at first and “triple-checked” the Money Saving Expert staff.
He said an HMRC spokesman told them, “We recognize that the situation from home is very fluid this year, so we are accepting claims for the entire year.
“This is true even if people have only worked from home for part of the year to avoid having to contact us when they have to work from home again.”
However, to qualify, you must have had “additional costs” to work from home and must work from home.
The financial journalist said the system change was due to work life changes and it also saves HMRC processing costs by eliminating the need for employees to file multiple claims.
On his blog on Money Saving Expert, he said, “Now, for this tax year only, you only need to make a claim once and it will be automatically granted for the entire tax year at the £ 6 / week relief rate.”
He said this equates to £ 62 per year for property taxpayers and £ 124 per year for higher taxpayers.
Martin has asked those affected, who work at home, to file claims “immediately” and not to delay the tax breaks.
He commented, “So if you have had to work from home at any time since April 6, 2020 (the start of the tax year) and it incurs higher costs, you don’t need to claim a delay and claim it immediately.”
HMRC has set up a special microservice for processing such claims – available here.
According to Martin, this will automatically apply the entire 2020/21 tax year relief via your tax code, and anyone who makes a claim for that tax year and has not yet made a claim can use it.
“You have been able to claim this since the lock started on March 23, 2020. Simply enter that date. If you do, you will receive a refund for the entire tax year (which began April 6, 2020) and two weeks more on top, “he added.
However, those who receive the tax break will not receive a check as their tax code will be changed on their pay slip instead. Ultimately, this means that less tax will be collected each month for the rest of the year.
For more information on how to apply for tax breaks, please visit the Money Saving Expert website via the link here.
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