Coronavirus Update: If you are working from home you may be able to claim tax back

As we are all now largely working from home you may be able to claim tax back to help with increased costs – as winter approaches you may be thinking about increased electricity and heating bills.

HM Revenue & Customs (HMRC) says it will consider claims from employees working at home due to coronavirus measures if their usual workplace is closed.

In simple terms, you may be able to claim a rate of £6/week – worth £1.20/week at 20% tax, £2.40/week at a higher rate.

To make the process easy, HMRC says that claims will not need to justify that figure – meaning you won’t need to keep receipts or prove information.

To claim, you can complete a self-assessment form if you normally fill these out. However, most people will need to fill out a P87 form which can be done online here.  This is a very easy process and links to your online record with HMRC. It can also be done on a postal form. You’ll be asked for your employer’s name and PAYE reference. You will also need your NI number.