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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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.