If your employer requires you to work at home, you can – and have always been able to – claim for increased costs due to working from home, eg, heating and electricity. Clearly, right now many firms have closed workplaces and that means across the UK millions of staff are temporarily required to work from home, and therefore are eligible to claim for increased costs. HMRC says it will consider claims from employees working at home due to coronavirus measures if their usual workplace is closed.
Yet apportioning these costs is tough. So instead, from Monday 6 April 2020 (the new tax year) you can, in simple terms, claim a rate of £6/week (currently it's £4/week – but below I'll stick with the £6 figure). You can claim more if your costs are higher, but it becomes a much more labour intensive process.
There are two ways to do this:
- Employers can pay you £6/week extra tax-free. Employers can give you an allowance up to this amount and what they give you is free from tax, so you get it all (to give you more, it will need to make special arrangements).
But right now – with many firms struggling – asking may be bad timing, so instead you can...
- Claim tax relief on £6/wk (worth £1.20/wk at 20% tax, £2.40/wk at higher rate). If your employer won't pay expenses for your extra costs due to necessary working from home, but you have them, then you can ask for the amount to be deducted from your taxable income.
To make the process easy, HMRC says that claims in line with the employers' payment (ie, for £6/wk) will not need to justify that figure – meaning you won't need to keep receipts or prove information.
The impact of a £6/wk claim is the tax savings, that's a gain of £1.20/wk (about £62/year) for basic 20% rate taxpayers, and £2.40/wk (about £124/yr) for higher 40% rate taxpayers.
If you believe you have higher increased costs then you can claim more, but you will need evidence of the cost increases
More Information and How to Claim here....
Article: Martin Lewis MoneySavingExpert]