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Employees Working From Home Could Benefit From Tax-Free Payment

Many people have been forced to work from home following the government’s national lockdown on March 23rd.

While this has had a big impact on employees’ working lives, as well as their personal ones, they could benefit from receiving a fax-free payment of over £300, which is intended to help towards higher household bills.

The Chartered Institute of Taxation (CIOT) has reminded employers to let their staff who have to work from home know about the measure, which is the equivalent of £6 per week.

Chair of the CIOT’s Employment Taxes sub-committee Colin Ben-Nathan said: “HMRC have confirmed that following the government’s Coronavirus guidance, employees who are working temporarily from home will be eligible to receive this tax-free payment because they currently have no appropriate office-based facilities.”

He went on to say this increase in salary “would be a welcome boost”, as it could help to offset higher electricity bills that working from home is likely to lead to.

The employer can decide whether to make the payment themselves. Otherwise, staff can claim tax relief from HMRC by keeping a record of their bills, and by proving these were “wholly, exclusively and necessarily” required for them to conduct their work.

Those who work for themselves will also be able to receive some financial relief if they have been unable to carry on working during this crisis, as the government recently revealed they could be given 80 per cent of their salaries up to the value of £2,500 for three months.

For guidance on claiming this grant or the tax-free payment, contact accountants in Bourne End.

Published On: April 23, 2020

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