Working from home? Get some tax relief

Many of us have been asked to work from home during the Coronavirus pandemic, in fact the government has even instructed us to work from home if we can. Employers are able to pay you a flat rate of £6 per week or £26 per month (2020-21 tax year) in expenses without affecting your taxable pay. Understandably most employers are not paying this on top of normal wages, in which case you can apply for tax relief from HMRC instead - effectively reducing your taxable earnings by £6 per week or £26 per month, depending on how often you get paid.

If you fill in a tax return you can claim this allowance at the same time.

If you don't fill in a tax return you need to claim the allowance from HMRC - it won't take long but you will need to set up a government gateway ID if you don't have one already. Apply here

If you are a basic rate taxpayer you will save 20% of the £312 annual allowance, so you will have £62.40 towards restocking your fridge from the incessant emptying it will inevitably have suffered.

Meanwhile if you are a higher rate taxpayer then you will have an extra £124.80 so you may be able to add some luxury items, so definitely apply here.

You don't have to have been working from home for the whole tax 2020-2021 year, any short period will do as the normal rules have been relaxed due to the pandemic. It must have been compulsory rather than your own choice though.

If you need any further advice please contact us