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54,800 customers claim tax relief for working from home

HM Revenue and Customs (HMRC) has received more than 54,800 claims from customers using a new online portal which allows workers to claim tax relief for working at home.

54,800 customers claim tax relief for working from home
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  • Staff Reporter
  • October 14, 2020
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Launched on 1 October, the online portal has been set up to process tax relief on additional expenses for employed workers who have been told to work from home by their employer to help stop the spread of coronavirus.

From 6 April 2020, employers have been able to pay employees up to £6 a week tax-free to cover additional costs if they have had to work from home.

According to HMRC, 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 towards the cost of their household bills. Higher rate taxpayers would therefore receive £2.40 a week (40 per cent of £6 a week). 

“We want everyone to get the money that they are entitled to, so we’ve made the online service as easy to use as we can – it takes just a few minutes to make a claim," said HMRC’s interim director general of customer services Karl Khan. 

Mr Khan explained the once the application has been approved, the online portal will adjust an individual’s tax code for the 2020-21 tax year, and the employee will receive the tax relief directly through their salary and will continue to receive the adjustment until March 2021.

HMRC is also reminding employed workers, for example healthcare workers and care home staff, that they can also claim tax relief on work-related expenses, including cleaning their work uniforms.

The extra money is tipped to provide some help to thousands of critical workers whose efforts are helping save lives during the coronavirus pandemic.

HMRC is encouraging customers claiming tax relief for working from home to apply directly via https://www.gov.uk/tax-relief-for-employees/working-at-home

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