Just weeks left to claim up to £125 tax back for working from home

MILLIONS of Brits have just weeks to apply for the £125 working from home tax relief scheme.

Make sure to apply for the rebate before the new tax year begins in April.

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You can claim the refund from HMRC if you’ve worked from home for at least one day since April 6, 2021.

It is designed to help Brits cover the extra costs of remote working such as higher heating or water bills, business calls or a new broadband connection.

Because the rebate runs for the tax year, the deadline for applying for your money back is just over six weeks away on April 5.

Once you have applied, the cash will be automatically returned with your next payslip and your tax code will be temporarily changed to reflect this.

It might be the last year you can apply as the scheme could face the axe.

The government is reportedly reviewing exactly who will be eligible for the tax relief and how much you can get.

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That’s because a whopping £500million has been dished out through the scheme during the pandemic, The Telegraph reports.

That’s up from the £2million a year it cost the government to run the scheme previously.

More people have applied for the help after the government relaxed the rules at the beginning of the pandemic to help families cope with rising costs as a result of being told to work from home.

The amount of money you could claim tax relief on rose too, from £4 to £6.

How much can I get?

If you are a basic rate tax payer, the relief is worth 20% – that means that you’ll get £1.20 per week.

This adds up to £62.40 over a year for anyone earning between £12,500 and £50,000.

For higher rate tax payers, your relief will be worth 40% or £2.40 per week.

This adds up to £124.80 for the year for anyone who earns more than £50,000 per year.

How can I apply for the scheme?

HMRC has an online tool to help you submit a claim.

You can claim for last year too (the tax year runs from April to April).

HMRC will accept backdated claims for up to four years – but you can’t claim the tax back if your employer is covering your working from home expenses already.

You also can’t claim if you’re self-employed – since you work for yourself you can claim expenses on your tax return.

Your employer must have ordered you to work from home and not come into the office to be eligible.

You will need a Government Gateway user ID and password, which you can get online – it takes less than 10 minutes.

You’ll need some personal information handy too.

This includes a National Insurance number and a recent payslip, P60, or a valid UK passport.

If your application is approved, your tax code for the 2021 to 2022 will change and you’ll see the relief come directly through your salary – so its not a one-off payment.

Millions of married couples could be missing out on up to £1,220 in tax relief if they have not claimed marriage allowance.

Brits were urged to take advantage of the tax break as the cost of living is set to soar further.

That includes an estimated 6% rise in council tax.

This post first appeared on thesun.co.uk