What can an Employee working from home claim for?

With more of us working from home, there’s some good news for employees from HMRC. Tax relief can now be claimed to cover some of the costs of working from home.

An employer can pay an employee £312 every tax year (equivalent to £538 gross for a higher rate taxpayer). The payments are tax deductible for the employer and not liable to national insurance contributions.

In instances where the employee does not receive the payments from the employer, a new claims portal on the HMRC website allows the employee to deduct £312 from their income, generating a tax refund of £124.80 for a higher rate tax payer, or £62.40 if basic rate.

There is a similar tax break for the self-employed, that provides for a deduction from profits of up to £26 a month.

If you’re unsure on how to incorporate these changes into your Payroll, please do not hesitate to contact us on 01384 376964

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