HMRC has received more than 54,800 claims from taxpayers using a new online portal which allows workers to claim tax relief for working at home.
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.
Launched on 1 October 2020, 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 COVID-19.
Employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HMRC.
HMRC is encouraging taxpayers claiming tax relief for working from home to apply directly through GOV.UK working at home.
Eligible taxpayers can claim tax relief based on the rate at which they pay tax. For example, if an employed worker pays the 20% basic rate of tax and claims tax relief on £6 a week, they would receive £1.20 a week in tax relief (20% of £6 a week) towards the cost of their household bills.
Higher rate taxpayers would therefore receive £2.40 a week (40% of £6 a week). Over the course of the year, this could mean taxpayers can reduce the tax they pay by £62.40 or £124.80 respectively.
HMRC's Interim Director General of Customer Services, Karl Khan, said:
'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.
'Once the application has been approved, the online portal will adjust an individual's tax code for the 2020/21 tax year. The employee will receive the tax relief directly through their salary and will continue to receive the adjustment until March 2021.'m enhanced payment plans
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