Coronavirus - Have you been working from home?
Since Mid-March 2020, working from home has become the new norm for some employees. As a result, utility bills have increased and you may have had to purchase additional office equipment.
If your employer is insisting on you working from home to keep everyone safe during the pandemic, then you may be able to claim tax relief on a proportion of the additional costs of running your home. Determining exactly how much that might be is not an easy exercise so HMRC will allow
- Your employer to pay you a tax-free allowance of £6/week; or
- Employees to claim the £6/week as a deduction against taxable income
without it needing to be justified.
If you complete an annual Self-Assessment Tax Return, include the claim on the ‘Employment’ pages. If not, complete P87 online through your Government Gateway account.
If, since the start of lockdown on 16 March 2020, your employer has purchased (or is reimbursing you for) home office equipment so that you can work from home efficiently, you will not be liable to Income Tax or National Insurance on its value until after 5 April 2021.
If you believe you have incurred higher costs, larger claims can be made but they will need to be evidenced. Likewise, if your employer has paid you more than £6 per week, they will need to make special arrangements with HMRC.
If you need help deciphering what you can claim for, please call one of our private client specialists at CKLG on 01223 810100 for friendly help and advice.