Millions still eligible for £125 tax refund for working from home - how to claim it

Monday, 13th September 2021, 1:38 pm
You could be eligible for up to £125 if you have been working from home due the pandemic (Photo: Shutterstock)

Millions of people may still be eligible to claim a £125 tax refund due to the Covid-19 pandemic.

Those who have been forced to work from home, whether part time, or even one day, are eligible to receive it.

The refund has already been claimed by more than 800,000 homeworkers, according to HM Revenue and Customs, but millions are still missing out.

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Who is eligible for the tax refund?

Anyone who has been forced to work from home by an employer due to the Covid-19 pandemic, whether part or full time is, eligible to claim this tax relief for household costs.

Household costs include electricity, gas, and dial up internet activity.

You will not be able to claim if employers are already covering working from home costs.

Those who are self employed are also not eligible for this tax refund as expenses are already claimed on your tax return.

How much can you claim?

For the current tax year, you can claim £6 tax relief per week. For basic rate tax payers, you could receive £1.20 per week, which is worth 20 per cent.

If you pay higher, you could receive £2.40 per week, with your tax relief worth 40 per cent.

To claim, you will need to provide evidence of any extra costs through receipts, bills or any other paperwork.

For any backdated claims, you will receive them as a lump sum through your salary.

How do I claim it?

HMRC has an online form to claim for this year and any previous years.

You will need to create or use your Government Gateway User ID and password and have your national insurance number, a recent payslip or a valid UK passport with you.

Once the tax relief is approved, the tax year will adjust accordingly and you will continue to receive the adjustment into your salary through your weekly or monthly salary.

This article originally appeared on our sister site, NationalWorld.