Staff urged to claim homeworking tax relief

  • 09 Nov 2020

HMRC is urging employed workers who have been told to work from home by their employer to claim tax relief on higher household bills they have incurred.

From 6 April 2020, employers have been able to pay staff up to £6 a week tax-free to cover additional costs if they have had to work from home.

 

The exact amount employees receive in tax relief depends on the rate at which they pay tax, with basic-rate tax-payers able to reduce the tax they pay each year by £62.40 (20 per cent of £6 a week) and higher-rate tax-payers by £124.80 (40 per cent of £6 a week). Between 1 and 11 October, some 54,800 claims were received by HMRC.

Employees who have not received the working-from-home expenses payment direct from their employer can apply to receive the tax relief from HMRC through its new online portal at https://www.gov.uk/tax-relief-for-employees/working-at-home

Staff do not need to provide evidence to show their bills have increased unless they are applying for tax relief on costs above the £6 per week flat rate.

HMRC is also reminding employed workers, such as healthcare workers and care home staff, that they can also claim tax relief on work-related expenses, including cleaning their work uniforms.

 

Those who clean, replace or repair uniform or tools, or pay fees and subscriptions, for their work are being urged to apply online directly to HMRC and see instantly if they are eligible for tax relief on work expenses.

 

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