Working from home tax relief

5 Nov 2020 Eamonn McKee    Last updated: 5 Nov 2020

Employees working from home due to COVID19 are eligible to apply for tax relief up to £125

HMRC has launched an online portal allowing employees an easy way to claim tax relief on working from home.  The tax relief is provided to workers provided they have been told by their employer to work from home and provided they have not received home expenses payments directly from their organisation.

The portal will adjust the individuals tax code for 2020-21 tax year.  The employees will receive tax relief directly through their salary and will continue to receive the adjustment until March 2021.

What is it worth?

The tax relief will be based on an allowance of £6 a week, for basic tax payers the relief is worth 20% of the £6 - £1.20 a week the equivalent of £62.40 for the whole tax year.  Higher tax players can claim 40% or £2.40 a week.

If your expenses are higher it is more complicated you will need evidence such as receipts, bills etc.

Money saving expert website has produce a more comprehensive guidance.

eamonn.mckee@nicva.org's picture

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