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 is in addition to any employer payment received.
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 £18 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. This can be done, regardless of what you are paid by any employer, although you can only claim one allowance regardless of the number of employers you have. Here's the link: https://www.gov.uk/tax-relief-for-employees/working-at-home
Now, let's look at what the employer can/should provide: First important point is that any money provided by employer for such costs is taxable and must be paid via your PAYE system. Some employers choose to give a high hourly rate in recognition, others provide a stand-alone figure - either way, both must go via payroll and payslip. A good starting point is for your employer to pay £18 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: Fri, 07 Jun 2019 08:00 by Helen Carrier