Martin Lewis reveals how you can claim extra tax free cash for working at home due to coronavirus

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Martin Lewis has revealed all people working from home who are on full pay are entitled to extra money from the government because of coronavirus.

Appearing on a special edition of The Martin Lewis Money Show show last night, the financial guru told viewers about an allowance which is in place to help you out at home.

As Brits up and down the country will be staying in constantly, the 47-year-old said the extra cash is to cover the increase in your bills that results from being at home so much.

However, Martin warned that calculating exactly how much extra money homeowners will now be spending on their bills and other costs isn’t easy.

He said: “If you are an employee required to work from home and you’ve had extra expenses, such as heating and energy on the back of that, you’re employer is allowed to pay you £6 a month tax free.

The Martin Lewis Money Show / ITV

“Now ,you can do that, but asking your employer for extra money at the moment can be tricky business.”

Martin added that an alternative way of going about this, is by going through HMRC.

“So instead you can claim a £6 allowance from HMRC,” He said. “Which works out for a basic rate tax payer you’ll gain £1.20 a week for a higher rate tax pay of £2.40 a week.

“To do this you need to fill in your P87 form, but you want to fill this in after you go to work.”

Watch the video above to see his explanation in full

Martin explained how to claim in detail in a  blog post on his website.

“If your employer won’t pay expenses for your costs due to necessary working from home, but you have them, then you can ask for the amount to be deducted from your taxable income,” Martin wrote.

“To make the process easy, HMRC says that claims in line with the employers’ payment (ie, for £6 a week) will not need to justify that figure – meaning you won’t need to keep receipts or prove information.”

It’s not a huge amount of cash, but it’s better than nothing.

“The impact of a £6 a week claim is the tax savings, that’s a gain of £1.20 a week (about £62 a year) for basic 20% rate taxpayers, and £2.40 a week (about £124 a year) for higher 40% rate taxpayers.”

If you have higher costs then you can claim more, but need evidence of the cost increases.

To get it, there are two main ways.

“If you normally do a self-assessment form, you can claim on it,” Martin wrote.

“Yet for most people, this will simply require filling in a P87 form.”

Martin said you can do this online with a P87 form using your Government Gateway account or by filling out a postal P87 form.

“You’ll be asked for your employer’s name and PAYE reference (which you can find on your payslip or P60), and your job title,” Martin said.

“For postal P87s, you’ll also need your national insurance number.”

He said the key part was the “Using your home as an office” section.

For the online form, Martin said it’s easiest to put £6 for each week spent at home in the “amount you have paid” section and £0 in the “amount paid to you by your employer” section if they haven’t boosted your wages.

If you’re claiming through the postal form, you need to add a “using your home as an office” expense in the “Other expenses” section manually.

“Once you’ve submitted the claim, if you do it online you may hear back within a couple of weeks. However, obviously if HMRC is under pressure it may take longer,” Martin said.

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