People still working from home can claim £125 cash back
6 January 2022, 12:25
HMRC is offering tax relief to people spending more money on household costs due to working from home.
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As we enter the New Year, Government advice still recommends that people work from home if they can.
This guidance came into place on December 10, 2021, after the Omicron variant pushed England into 'Plan B'.
Working from home is a huge change of pace for millions who are not accustom to spending all day in their homes, and causes a spike in their household bills.
If you are currently working from home, you can still claim the £125 allowance from HMRC to help ease the increase of gas, electricity, internet and telephone costs.
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Millions of people are eligible for their repayment for the 2021 - 2022 period, and can claim if they are working from home full-time or part-time.
You can claim your working from home allowance through your employer or through HMRC directly.
If you are a sole trader, you can claim the funds through your work expenses.
The repayment will not come to you in a bank transfer, but instead will be paid to you through a change in your tax code.
It should also be noted that you can not claim the money if you have made the decision to work from home and it has not been made mandatory by your employer.
The GOV.UK website states that you can claim tax relief on either:
- £6 a week from 6 April 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
To claim the allowance, all you need to do is visit the GOV.UK website, fill out a questionnaire and then login to your Government Gateway.
If you do not have a Government Gateway login, you can set this up in a matter of minutes.