Martin Lewis has shared great news for anyone facing the prospect of working from home for the foreseeable future, even if it is for one day.
The Money Saving Expert founder has become the nations consumer champion, sharing tips and tricks for Brits to make the most of their finances.
The cash-saving guru regularly provides financial advice through weekly newsletter and TV appearances including his own ITV show, The Martin Lewis Money Show.
At the turn of the new tax year HMRC made changes to their website to include news details on working from home tax relief.
Money Saving Expert has now confirmed that employees will now be able to claim back tax on working from home through 2021-22.
The website reads: “Essentially, if your employer requires you to work from home, even for a day, you are eligible for a whole year's worth of tax relief.
“This is a special pandemic rule that was introduced for the 2020/21 tax year (which ended on Mon) but has been extended for 2021/22.”
Over 2 million claimed tax relief last year after Martin Lewis urged workers to apply both on his website and on his ITV show.
If you are yet to claim, you still can with a total gain of up to £250.
Before the pandemic, people could only claim for time spent at home however that changed a few months into lockdown.
HMRC told Martin Lewis at the time: "We recognise that the working-from-home situation is very fluid this year, so we're accepting claims for the full year's expenses, 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."
How much can you claim?
The Government website explains how working from home tax relief works:
You can either claim tax relief on:
- £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
You’ll get tax relief based on the rate at which you pay tax. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week you would get £1.20 per week in tax relief (20% of £6).
More advice new tax year must-dos can be found on the Money Saving Expert website.
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