So many more of us are working from home right now, due to workplaces being closed. Some companies are stepping up and helping their employees by reimbursing expenses and providing them with the equipment they need to do their job. Some other companies aren’t helping at all. There are two things to discuss here.
If you’re an employer, you can pay your employees a homeworking allowance. This will help to cover any additional household expenses which have happened due to working from home. If the cost doesn’t go above £6 per week, the employee doesn't have to show any receipts of proof of these additional costs. It’s also worth noting that the payment is also tax-free and NIC-free. If your employer isn’t currently paying you anything, let them know about this, it might sway them to hand over some expenses to help you out.
If they’re still unable to cover you in this new working from home environment, you are allowed to claim a tax deduction. HMRC will accept homeworking expense claims of £6 a week, with no proof of costs required. An extra bonus, especially for those who are having to use the phone a lot, is that the cost of business calls can be claimed on top of this tax deduction. Any working from home claims in the 2019-20 tax year (so before 6th April 2020) are to be paid at £4 a week. So if you started working from home earlier in the year, you can still claim so you aren’t out of pocket. These should be submitted by using form P87.
For those who have had to buy any equipment needed for their new working from home status, there will be a temporary tax exemption for reimbursement. The payment has to be paid to the employee between March 16th 2020 and April 5th2021.
With the increase of people working from home it’s nice to know that we’re being covered for any extra expenses. Be sure to claim yours!