Are you an employee working from home? Whether as a result of COVID-19 or not, so long as it is an agreed home working arrangement your employer can pay you a tax-free allowance of £6 a week (from 6 April 2020).
The employee does not have to keep any records of costs or provide evidence to their employer. If more than the flat rate is paid, the employee will have to demonstrate how their additional costs exceed the flat rate.
If an employer does not pay the homeworking allowance for employees required to work from home, the employees can claim a deduction for the additional costs they incur directly from HMRC.
How to claim
If you complete a tax return
Make a claim for home working costs under “using your home as an office”
If you are not required to complete a tax return
Make the claim using this form or call HMRC on 0300 200 3300.
For a standard rate taxpayer claiming for the whole of 2020/2021 this will save you £62 of PAYE a year.
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