Silly question...

Silly question...

Didn't find your answer?

Client has asked if an employee can go back 6/7 years for the £3/£2 / week working from home allowance. Their exact question was "employeex would like to claim for the £3 per week for working from home.  After speaking to Xdirector they would both like to know how far back employeeX should claim for via his tax coding. directorX would like 7 years!"

I am not acting for the employee but obviously am for the company. I must be a bit mind numb as I can't seem to settle on a correct answer so am hoping someone else can put my mind at rest before I see the client tomorrow (or at least save me doing all the looking up....)

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By Steve Holloway
08th Jun 2011 11:27

Choice or not?

 http://www.hmrc.gov.uk/incometax/relief-household.htm

 

Suggests that if there is no choice but to work from home then the £2/£3 can be claimed (or more if costs are higher) and you can go back 'several' years subject to being within self-assessment for those earlier years.

If it is voluntary (i.e. simply more convenient) then the £2/£3 paid by the employer will not attract tax/nic but the employee cannot make a unilateral claim for the allowance i.e. it must be paid.

I would be interested if anyone has a different interpretation to mine.

 

 

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By Ding Dong
08th Jun 2011 14:55

Thanks Steve

Your interpretation makes a lot of sense to me and having read the link seems to make sense.

I am quite glad I asked the question

Many thanks

 

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