Money-saving expert Martin Lewis reveals how YOU can claim up to £125 tax credit if you’re pinged by the NHS Covid-19 app
- Britons can reclaim £125 in tax if Test and Trace advised to work from home
- British money-saving expert Martin Lewis says claims can also be made retroactively
- Explains that paying less tax is intended to cover the cost of working from home
Martin Lewis has revealed that Britons who are pinged or informed to isolate themselves by Test and Trace may be eligible for a deduction from the amount of tax they pay while working from home.
In a recent Newsletter for money-saving experts, Martin explained that people advised to work from home after being contacted by the NHS Test and Trace app could be entitled to £125.
Those who qualify can have their tax code adjusted to pay less tax, but cannot get the money up front.
Explaining who can benefit from the tax relief, Martin said: ‘HMRC has specifically confirmed to me that claims by employees who work from home due to coronavirus measures, if their usual workplace is closed, will count towards this exemption.
Martin Lewis has explained how Britons forced to work from home after being ‘pinged’ by the NHS Test and Trace app can claim £125 (file image)
“The same goes if you have to work from home because NHS Test and Trace told you to self-isolate, or because you’re in self-isolation after being pinged by the NHS app.”
He claimed that ever since he discovered the service, he’s insisted on making sure people are aware of it and claim it, even if they only intend to use the money to help someone else.
Martin said the scheme is designed to cover the extra costs incurred while they have to work from home.
Many people have spent more on dial-up internet, telephone and utility bills.
HMRC has already had more than three million people file a claim, but the amount deducted will depend on how much tax you pay.
For example, if you pay the basic tax rate of 20 per cent and claim tax credit for £6 per week, you will get £1.20 per week in tax credit (20 per cent of £6) as a contribution to household expenses.
Martin (pictured) said receipts are not necessary to make a claim unless you want to claim a tax credit of more than £6 a week
Proofs are required as proof for claims of £6 per week.
Martin said if you have costs over £6 a week you can claim more but you have to provide proof so it’s a ‘much more arduous process’.
A Government Gateway user ID and password are required to make a claim, which can be created in 10 minutes using your National Insurance number and a recent pay slip or P60 or a valid UK passport.
The tax credit can also be applied retroactively to cover costs incurred if your employer required you to work from home for even one day in 2020.
Martin’s revelations about the service come as a record of more than 600,000 people ‘pinged’ by the NHS Test and Trace app in the past week.
Company Secretary Kwasi Kwarteng has revealed that the government will release a list of industries that may ignore the app later in the day as concerns grow that supermarket shelves will remain empty and shoppers panic.