Norfolk Clerks, are you claiming your ‘working at home’ tax allowance?
There is a tax allowance for employees whose place of work is their home and this can be claimed if your employer is not reimbursing homeworking costs.
Let's look at what HMRC allow for first: there is a 'working at home' allowance which can be claimed by any individual who must work from home. This allowance starts at £26 a month as a flat rate that doesn't need any receipts as justification. So, an application to HMRC (use their online facility for individuals) is the first thing to do. This will get added to your Tax allowance. Also you can apply for a backdated application for up to four years. You can only claim one allowance regardless of the number of employers you have. Here's the link: https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32815
Now, let's look at what the employer can/should provide: First important point is that there are tax implications depending on the amount paid by the employer. Some employers provide a regular amount as a contribution to costs and others may provide a specific amount based upon evidence (bills). A good starting point is for your employer to pay £26 (it was £18 a month prior to April 2020) a month, as it is tax neutral. If they pay more, then it will be subject to tax, although what tax you actually pay will depend on your personal tax status. Agreements are usually negotiated between employer/employee where the best outcome is an appropriate payment reflecting the actual costs - there should be no expectation on a Clerk to subsidize a Council.
Posted: Wed, 08 Apr 2020 10:00 by Helen Carrier