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Home Working Allowance

If you are working from home you may be entitled to claim the working from home allowance? At £216 a year tax free, it is worth finding out if you qualify.

Are you working from home? An increasing number of employees are. Additional time spent at home impacts the fuel, water, telephone and electricity bills. HMRC have an allowance available to counter these costs. If you have not been claiming this allowance but should have been, do not fear, you can claim for it as far back as 2014/15. This allowance is free from tax or NIC's.

Working from home needs to be specified as part of the job, or else a home-working agreement with your employer needs to be in place to qualify. If you are working under a home-working agreement, your employer can contribute towards your expenses - £4.00 per week (from 2015-16) or more if you can show that you had to spend more than that. However, if your employer doesn't contribute you can not claim the allowance.

From 6 April 2012 the guideline rate you can claim when working from home increased from £3 to £4 per week. For employees who are paid monthly, the guideline rate is £18 per month. This is the rate which can be claimed without the need for records to demonstrate the additional expenditure. This guideline rate is not a maximum amount and greater amounts can be paid where there is evidence to justify them. Claiming does not incur an extra tax or NICs charge.

Read more about working at home on Gov.uk

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This article was published in our News section on 24/03/2020.

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