HOUSEHOLDS should urgently apply for the £125 working from home tax relief as the scheme faces closure.
If you’ve worked just one day from home, you are eligible to claim £125 to cover the costs of doing so.
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It could come in handy while Brits are being battered by rocketing energy bills – some are having to put 50% more of their weekly budget towards gas and electricity costs.
You can currently claim the relief from HMRC – but families are being urged to apply for the free cash now as the scheme could face the axe.
The government is reviewing exactly who will be eligible for the tax relief and how much you can get after £500million has been dished out in help over the course of the pandemic, The Telegraph reports.
That’s up from the £2million a year it cost the government to run the scheme.
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, helping to fuel demand.
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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.
We explain how you can apply for the help NOW as the scheme is at risk of closing.
How to apply
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, in fact, 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.
Plus, you will have needed to be told by your employer 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.
The government was contacted for comment.
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.
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