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New online HMRC tool to help you claim back up to £125 if you work from home

HMRC has launched a new tool to help workers claim tax relief if they're having to work from home during the coronavirus pandemic.

The online portal, which was launched on October 1, has been set up to help employees claim back any additional expenses.

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Workers can now claim tax relief if they're having to work from home during the pandemicCredit: Getty

The Sun previously reported how employers were able to pay their employees up to £6 a week tax free to cover things such as higher energy bills.

HMRC said that since the scheme launched, more than 54,800 claims have been made.

How it works is employees can claim tax relief based on the rate that they pay tax.

An example from HMRC is if an employed worker pays a 40% tax rate and claims tax relief on £6 a week, they would receive £2.40 a week (40% of £6 a week).

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You'll be quizzed about if you've paid tax, what you're claiming tax for, if you're trying to get cash back for more than £2,500 in one tax year or have completed a self-assessment tax return, if you've paid tax the year that you're claiming for and if your employer has paid your expenses.

You'll then be directed , where you sign into your government gateway account, or create one.

It's free to do and is where you can manage your tax payments if you do a self-assessment tax return or where you track your expenses claims.

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HMRC said you can claim from the date you began working from home and you can claim work-related expenses for any of the previous 4 tax years.

You'll also be able to claim once the tax year has ended (from April 2021) and receive a lump sum payment instead of money each month.

How much do I get?

The amount of money people can get depends on their tax rate and it's the highest rate of tax you pay that's used.

For those paying the standard tax rate of 20%, £1.20 per week can be claimed.

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While for people who pay tax at the higher rate of 40%, £2.40 per week can be claimed.

Additional rate tax payers who pay 45% can claim £2.70 a week.

Those who were required to work from home from the start of lockdown (March 23) and returned to the office this week can make a claim for 24 weeks.

That adds up to a refund of £28 for standard rate taxpayers, £56 for higher rate taxpayers, or £63 for additional rate taxpayers.

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And for anyone working from home for longer, the total amount could be higher.

The tool is one of the many drives HMRC has implemented to try and help people with any extra cash that they've had to spend.

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Workers have been told they can spread out their tax bills with Rishi Sunak’s Time To Pay scheme.

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The self-employed also just have a few days left before the deadline for applications of the SEISS government grant.

Meanwhile, the Christmas Universal Credit, PIP and other benefit payment dates have been announced.

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