Home workers can claim back up to £125

MILLIONS of people may be eligible for a “work from home allowance” that would give them £125 back per year.

People who have been working from home since April 2020 could be eligible for a HMRC tax rebate as workers head for higher National Insurance contributions from next year.

The funds come from HMRC’S scheme which applies to anyone who has been asked to carry out their job from home for even one day since April 6, 2020, the Mirror reported.

Currently, you claim the money back for 2020 to 2021 and 2021 to 2022.

“The Government has started hiking taxes to claw back some of the money it spent on helping us get through the pandemic,” Sarah Coles, money expert at Hargreaves Lansdown told The Mirror.

“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.

“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,” Coles added.

Taxpayers who are eligible 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.

Workers can find out more and make a claim at gov.uk/tax-relieffor-employees/working-at-home.

To claim the money, you’ll need a Government Gateway user ID and password, which usually takes about 10 minutes to set up.