Millions of workers urged to act fast for £125 January pay boost – check if you qualify

Millions could be entitled to over one hundred pounds in compensation if they have worked from home since April 2020.

This is thanks to HMRC’s ‘work from home’ allowance which applies to anyone who has been asked to carry out their job from home since April last year.

It equates to roughly £125 per tax season and workers can currently claim the money back for 2020 to 2021 and 2021 to 2022.

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Speaking to The Mirror, money expert Sarah Coles said: “The government has started hiking taxes to claw back some of the money it spent on helping us get through the pandemic.

“Anyone who is working and earning over the minimum threshold will face higher NI as a result, and we can’t be certain that this is the last of the bad news on tax hikes.

Millions could be entitled

“It means we should take advantage of any tax relief we can get, and the working from home rebate is a no-brainer if you work for an employer.

“If you’ve been required to work from home at all, and your costs have increased as a result, you can claim for a whole year.”

You only need to have worked one day from home to claim the refund – but it only applies if you’ve been told to work from home by your employer, not if you were asked to go out to work, but chose not to.

If you are a sole trader, you can claim the money through ‘work expenses’ on your next self-assessment.

Those who are employed can claim the rebate from your employer or HMRC directly.

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Eligible taxpayers can claim tax relief based on the rate at which they pay tax.

For example, if an employed worker pays the 20 per cent basic rate of tax and claims tax relief on £6 a week, they would receive £1.20 a week in tax relief (20 per cent of £6 a week) towards the cost of their household bills.

You can claim £2.40 a week if you pay the higher 40 per cent tax rate.

“You don’t need to produce paperwork to prove it and you don’t need to fill out a self-assessment tax return, because the Treasury launched a site to make it easier,” Coles said.

You won’t receive a cheque or a payment into your account, instead, your tax code will be changed for the year, so you’ll get the tax relief that way.

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Workers can find out more and make a claim on the government website.

It takes less than two minutes to find out if you’re eligible for tax back. To claim the money, you’ll need a Government Gateway user ID and password.

If you don’t already have one, creating a Government Gateway ID usually takes about 10 minutes. It works best if you have:

  • your National Insurance number
  • a recent payslip or P60 or a valid UK passport

You’ll then receive the tax relief directly through your salary.

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