HMRC have launched a new tool to help those working from home claim back additional expenses.
We've put together all you need to know on how it works and how to check if you're eligible.
How much could you claim back if you're required to work from home?
According to HMRC, employees can claim tax relief based on the rate of tax they pay - and you could recoup up to £125 per year.
Details on Gov.uk state: “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.
"This includes if you have to work from home because of coronavirus (Covid-19).”
However - you cannot claim tax relief if you choose to work from home.
Additional costs include things such as heating, metered water bills, home contents insurance, business calls or a new broadband connection.
They do not include costs that would stay the same whether you were working at home or in an office, such as mortgage interest, rent or council tax.
When did the HMRC online portal launch?
The online portal launched on October 1.
How much can I get?
You can either claim tax relief on:
- £6 a week from April 6, 2020 (for previous tax years the rate is £4 a week) - you will not need to keep evidence of your extra costs
- The exact amount of extra costs you’ve incurred above the weekly amount - you’ll need evidence such as receipts, bills or contracts.
Those paying the standard tax rate of 20 per cent, can claim £1.20 per week (tax relief on £6 a week), while those paying the higher rate of 40 per cent, can claim £2.40 per week.
Additional rate taxpayers who pay 45 per cent can claim £2.70 a week.
How to check if you're eligible and claim tax relief
To check if you’re eligible, use the online tool on the Gov.uk website.
HMRC have said you can claim tax relief from the date you began working from home.
If your application is approved, then your 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 this will continue until March 2021.
HMRC’s interim director general of customer services, Karl Khan, said: “We want everyone to get the money that they are entitled to, so we’ve made the online service as easy to use as we can - it takes just a few minutes to make a claim.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article