Forum Topic

WFH Tax allowance from HMRC

Just heard on the radio that there is a scheme whereby companies may pay their employees who are working from home a £6 weekly allowance.I say "may" since it is not mandatory, but even if they aren't paying it, the WFH employee can still claim tax relief.This works out at £1.20 for Standard Rate taxpayers, £2.40 for Higher Rate payers.Which doesn't sound much, but over a 52 week year works out at £62/£124 - worth a few minutes extra when filling in  your tax return.(I don't have exact details of the scheme - you'll have to google it yourself, or nudge your accountant)

Richard Cathcart ● 2214d8 Comments

https://blog.moneysavingexpert.com/2020/04/martin-lewis--working-from-home-due-to-coronavirus--claim-p6-wk-/

Steve Taylor ● 2214d

One would expect to be able to claim from your employer whatever expenses you incur on their behalf when working at home, including share of broadband and phone usage, use of your computer/printer/copying and any consumables, etc, etc. which they'd otherwise have to cover if you were working at the office. Check with your Trades Union. If self-employed then it's tax deductible?

Peter Evans ● 2214d

Yes, you can, there was an article on one of tha nationals about this recently but can't remember where. In turn, employers should be able to reclaim it against tax.

Claire Moran ● 2213d

If the employee has to install broadband specifically for the purpose of working from home, it is an exempt expense, and reimbursement isn't taxable. However, if the employee already has broadband at home, then reimbursement of the expense is taxable, and has to be reported on the employee's P11D. In my view, unless other expenses are considerable, it's not worth the hassle of keeping track of them separately from domestic use. It's simpler just to pay staff the exempt £26 per month.

Robert Fish ● 2213d

On the other hand it is somewhat petty to claim from your employer when you no doubt save on travel expenses, clothing, buying lunch etc etc. You have the benefit of getting up later and relaxing after work earlier. It should be a bit of give and take to see us through this difficult time, surely?

Steve Taylor ● 2213d

"Check with your Trades Union."Yes of course your Trades Union will tell you what you are entitled to claim but for me it is a give and take situation and somewhat petty.  As an employer I would be somewhat peeved at the pettiness and all the extra admin involved and would certainly, as a matter of principle, deduct three times the amount from any future bonuses or pay awards being considered.

Steve Taylor ● 2213d

..in which case you might find yourself facing an Employment Tribunal!

Peter Evans ● 2213d

Nonsense. Bonuses are discretionary.

Steve Taylor ● 2212d