Martin Lewis reveals how to claim £125 from HMRC if you worked from home this year

HMRC Martin Lewis work from home
(Image credit: Getty Images)

Martin Lewis has revealed that tax payers could claim up to £125 if they worked from home during the coronavirus crisis - even if it was just for one day.

The Money Saving (opens in new tab) Expert founder shared the information in his weekly newsletter, explaining that anyone who has been told to work from home (opens in new tab) since April 6th 2020 could be owed up to £125 in tax relief money.

You can even claim back some money if you worked from home for just one day during the pandemic (opens in new tab). Don't forget, £20 notes expire (opens in new tab) in 2021, so ensure you spend them before they go out of circulation.

Martin revealed that your tax code can be adjusted so you're not paying as much tax, in order to help you cover the extra cost of working from home, such as internet and energy bills.

"Right now many firms have closed workplaces and that means across the UK millions of staff are temporarily required to work from home, even if it's just for part of the week, and therefore are eligible to claim if you’ve had increased costs due to it," the financial pro said.

HMRC has confirmed the scheme, allowing claims to be made for work done from home since the beginning of the tax year in April.

In October an online tool was launched to allow people to make claims - it can be found here (opens in new tab).

HMRC Martin Lewis

Credit: Getty

"We recognise that the working from home situation is very fluid this year, so we’re accepting claims for the full year’s expenses," a HMRC spokesperson said.

"That includes even if people have only worked from home for some of the year, to avoid needing to contact us if you have to work from home again."

In order to make a claim you need to make sure you have access to valid identification such as a passport or driving license, a P60 or payslip from July 2020 onwards and your national insurance number.

You must also have been told to work from home by your employer - you can't make a claim if you have worked from home through choice.

If you claim the tax relief, the exact reduction to your tax bill depends on your tax rate and it's the highest rate of tax you pay that's used.

For those paying the standard tax rate of 20%, you would get £1.20 a week in tax releif.

While for people who pay tax at the higher rate of 40%, you would get £2.40 a week.

Additional rate tax payers who pay 45% tax would get £2.70 a week.

So claim for the entire 2020/21 tax year and that's tax relief of £62.40 for basic rate taxpayers, £124.80 for higher rate tax payers, and £140.40 for additional rate tax payers.

Caitlin Elliott
Caitlin Elliott

Caitlin is a Junior News Editor for Goodto.com, covering all things royal, celeb, lifestyle, food, and family. Having set her sights on becoming a magazine journalist when she was a child, Caitlin took on work experience stints at local papers and titles such as Cosmopolitan, Now, Reveal and Take a Break while studying for her Multimedia Journalism degree and has interviews with celebs, reality stars and the Archbishop of Canterbury under her belt (of course, she couldn't resist asking him about Meghan Markle and Prince Harry).