Martin Lewis, a well-known expert in personal finance, is urging people to act quickly as the deadline approaches to claim a tax rebate of up to £312 if they have been working from home during the pandemic. The claim can be made by individuals who worked remotely even for just a single day due to government restrictions. While workers have always had the option to claim tax relief to cover the costs of working from home, the rules were extended for the tax years of 2020/21 and 2021/22 to include those who worked remotely because of lockdown measures. According to Money Saving Expert (MSE), individuals should note that they can only claim back for up to four tax years prior to the current one, making it imperative to act before the impending deadline for the 2020/21 tax year on Saturday, April 5.
The claim allows for costs of up to a flat rate of £6 per week (£312 annually) without the need for providing evidence. If an individual’s claim is approved by Her Majesty’s Revenue and Customs (HMRC), they will receive a rebate corresponding to their tax bracket, with the maximum being £140.40. To be eligible for the claim, individuals must demonstrate incurring additional expenses due to working from home. This could apply if the person’s workplace was closed, if they were instructed to self-isolate by NHS Test and Trace, or if they were isolating after being notified by the NHS app. MSE clarifies that for the relevant tax years, individuals can claim for the entire year’s worth of relief even if they worked remotely only part of the time, provided they meet the eligibility criteria.
However, individuals are ineligible to claim if they voluntarily opted to work from home, did not incur extra costs, or had their additional expenses covered by their employer. The flat rate of £6 per week was introduced to simplify the process, especially for costs like heating and electricity, eliminating the need for receipts or evidence. Depending on their tax band, claimants can receive £1.20 per week for a basic 20% rate taxpayer (£62.40 annually), £2.40 per week for a higher 40% rate taxpayer (£124.80 annually), or £2.70 per week for a top 45% rate taxpayer (£140.40 annually). For individuals with costs exceeding £6 per week, substantiating evidence will be necessary, making the process more complex.
The majority of individuals can make their claim directly to HMRC for free via the online form. However, if they submitted self-assessment tax returns for the relevant years, a written request to HMRC to rectify their tax return/s will be required. It is crucial to meet the deadline of Saturday, April 5, for submitting claims. HMRC has cautioned against engaging with online advertisements offering assistance with expense claims, as third-party services may charge fees and potential inaccuracies in claims could lead to full repayment. For detailed guidance on the claiming process, individuals can refer to the MSE website.
This initiative comes as a significant opportunity for many workers who adapted to remote work during the pandemic, providing financial relief by reclaiming a portion of the expenses incurred while working from home. With the deadline approaching, Martin Lewis’s advice serves as a reminder for eligible individuals to seize this opportunity and submit their claims promptly. Taking proactive steps to reclaim these expenses can contribute to easing the financial burden faced by remote workers and ensure they receive due compensation for their additional costs during the challenging period of the pandemic.
The looming deadline presents a call to action for individuals who meet the criteria for the tax rebate, emphasising the importance of timely submission to secure the financial benefits. Martin Lewis’s guidance underscores the significance of utilising available opportunities for financial relief, particularly in circumstances where individuals have had to adapt to remote working conditions. By spreading awareness about this deadline and the process for claiming the rebate, individuals can maximise their chances of receiving the financial support they are entitled to for their remote work-related expenses.