For now more than a year and a half, many businesses have been working from home. With this in mind, if you are an employee who has been asked to work remotely, you will be pleased to know that you can now receive a weekly allowance to compensate for any additional expenses incurred.
What Does The Allowance Cover & How Can It Be Claimed?
The new tax-free allowance will provide employees with £6 a week to cover extra costs such as additional electricity, gas or water that has been used during working hours. If employees have had to use their own telephone, the cost of the business calls made can also be reimbursed.
In the instance where employees do not have a choice but to work from home, but the employer is not paying a working from home allowance, this can be claimed from HMRC. Click here to find out more about this.
During the tax year 2020-21, if you made a claim for the working from home allowance but are still working from home, you can now make another for the tax year 2021-22.
This working from home deduction is worth £1.20 a week in cash terms for basic rate taxpayers and £2.40 per week for higher rate taxpayers.