Has your employer explained Working from Home tax allowances?

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Many businesses have not seen a return to the office and employees are still working from home. Your employers should be explaining the tax allowances available to home workers.

Essentially there are two allowances:

1. The first is working from home tax relief for bills. For the 2020-2021 tax year, employees can claim up to £6 a week or £26 month in tax relief for working from home. But you must be working from home at your employer’s direction, not voluntary.

2. The second scheme is tax relief on equipment purchased for a home office. HMRC has currently relaxed its rules on this until April 5, 2021. Under the more relaxed regime, the employer can also reimburse home equipment costs without additional tax/NIC charged to the reimbursement. But equipment must be exclusively for working at home. Buying a new kitchen table to work on won’t be acceptable as you will eat your meals from it.

HMRC have stated that they have not seen an increase in claims so it is something people may not be aware of. Talk to your employer for more information.

Did you know about working from home allowances?

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