Martin Lewis’ MoneySavingExpert urges workers to claim up to £250 for working from home

MARTIN Lewis’ MoneySavingExpert is urging workers to claim up to £250 tax back for working from home due to Covid.

The cash is available to anyone who has worked at home for at least one day since April 6, 2020, meaning millions can claim the cash.

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

Before the pandemic, you were only allowed to claim tax back on the specific number of days that you worked from home.

Last year, HMRC then changed the rules to allow workers who’ve had to work from home for just one day to claim for the whole 2020/21 tax year.

And now it’s confirmed workers will be able to claim for the 2021/22 tax year too, which was first reported by MoneySavingExpert.

Writing in its weekly newsletter, the consumer site said: “Over 2million claimed it for last year (if you haven’t, you still can), likely as Martin [Lewis] shouted it from the rooftops, both here and on his show.

“If you’re eligible for both years, the total gain is up to £250.”

The current 2021/22 tax year began yesterday, on April 6.

The tax relief is worth £62.40 for basic rate tax payers each year and £124.80 for higher rate earners.

HMRC launched a free tool last year to simplify the process to claim.

Last month, Martin Lewis urged workers to make their claims as soon as possible as it wasn’t yet confirmed whether the perk would continue.

Since then, HMRC has updated the online portal to say the tax relief is available until April 5, 2022.

How to claim tax back

To cover the costs, your employer can effectively pay you £6 a week extra tax-free to cover expenses.

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

You don’t get a cash payout when you claim for the current tax year – instead your tax code is changed so you pay less tax equivalent to the amount of tax relief you get.

But if you haven’t already submitted a claim for the previous tax year (April 6, 2020 to April 5, 2021), you’ll typically get a tax refund.

No matter whether you’re claiming for just one year or both of them, you can do it through HMRC’s online portal.

If you claim for just the current tax year, HMRC will adjust your tax code.

You will then receive the tax relief directly through your salary and will continue to receive the adjustment until April 5, 2022.

It will be included as part of your weekly or monthly payments from your employer, and you’ll be able to see the money on your payslips.

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

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Paying tax is important – but there are ways to earn up to £43,590 extra this year without giving a penny to HMRC.

We also explain how the income tax threshold freeze announced in the Budget will affect your wages and take home pay.

It’s important to check your tax code is correct as it could save you money.

This post first appeared on thesun.co.uk