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Home working- employer payment

Interplay with HMRC full year for employees

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Thanks to pressure from Martin Lewis and obvious logistical problems for HMRC we have the full year concessionary claim 2020/21 of £312 for employees to claim if obliged to work from home for any period(s) due to Covid when they have not habitually done so. Grateful for that one.

Thinking of micro companies where (effectively) Directors and a few others are on payroll, has anyone seen any similar arrangement whereby the £26 per month can be included in payroll for current year in full?  Not seen any such similar  "blanket" arrangement, and I have to doubt it, but no harm in asking learned brethren!

Stay safe everyone.....

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By Matrix
21st Oct 2020 16:14

I assume you mean if the cost has not been reimbursed by the employer? How would they not be included by your first paragraph? Sorry I have not looked at this myself, although clients have started asking.

For Directors, couldn’t he or she just claim it as an expense from the company?

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By WallyGandy
21st Oct 2020 16:36

Hi Matrix- there are two options for obligatory home working.
[1] Employee claims £6 per week = £312 = £62.40 @ 20% £124.80 @ 40%
or
[2] Employer pays £6 per week or £26 per month tax free to employees

[1] has been expanded to full year by concession
My query is whether such a blanket 12 month allowance has followed.

It's doubtful as furlough claims stipulate director not able to work, so I'm beginning to think it's a no-brainer.

With respect if your clients are asking I'd explore this- Martin Lewis has a blog.

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Replying to WallyGandy:
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By Matrix
21st Oct 2020 16:52

Thanks. So your question is whether a Director on furlough can claim? I don’t see why not, they still have to pay all their bills. And it says you only need to work one day in the tax year.

I will claim for self assessment clients on 20-21 tax returns if applicable but hadn’t really thought that far. I think I only had a few queries in April but it is a bit of a furlough blur and the amount is so small.

Many of my Directors who work from home claim actual expenses.

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By janelm
21st Oct 2020 20:17

There is a new bit of the HMRC Government Gateway where people can (supposedly) easily apply to get their tax code updated for working from home (if they don't currently file a tax return):
https://www.gov.uk/government/news/54800-customers-claim-tax-relief-for-...

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By WallyGandy
28th Oct 2020 14:57

Hi Janelm- thanks for that. In fact I think my original post was a tad early before HMRC clarified. I have two clients who came out of SA 2019/20, but I wanted the £312 for each in code 2020/21. Agent helpline said "no" even though I was still agent- and referred to P87. I replied this was after yearend and after further digging I found the link you kindly supplied. Both clients were successful re 2020/21. The portal, however, says "no" if the taxpayer still files SA returns. Mine out of SA 5 April 2020. And agent should not do the claim.

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By Matrix
28th Oct 2020 14:23

Does anyone know if you can claim Use of home for more than one employment or an employment and a self-employment?

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