WFH allowance question

Employee usually works from home.

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An employee (in a sales role) usually works from home.

Contract is such that travel would not be permissible.

However, would the employee be entitled to a deduction from taxable pay for working from home?

Thanks,

Replies (6)

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By Wanderer
23rd Nov 2020 14:26

Yes.

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By Paul Crowley
23rd Nov 2020 14:36

He can be paid the allowance tax free by employer.

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RLI
By lionofludesch
23rd Nov 2020 15:02

I vote yes.

Crazy, isn't it ?

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By Paul D Utherone
23rd Nov 2020 15:16

At one point I believe HMRC's answer would have been No, but I understand they have shifted from that and would now say Yes.

If it is a matter of choice to work from home, rather than a requirement, then their page on this still seems to say No, so it may still come down to the contract and reason for WFH

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By Tax Dragon
26th Nov 2020 10:50

Without looking at any specific rules (i.e. this is a general point, about the general rule, and knowing me and my general points, possibly irrelevant to the question)... remember "in the performance of" - ITPO. It may seem unfair that someone working from home gets a deduction, while someone that incurs a cost travelling to work does not. But the general rule gives relief for expenses when? When they are incurred WEN ITPO the duties. Travelling to work is not performing duties. Costs not allowed. WFH is ITPO. Costs allowed. Crazy, Lion, maybe. But not wholly illogically based.

There's another condition about obligation to incur. That would be consistent with Paul DU's 'choice v requirement' point.

There is a separate specific exemption to which Paul C refers, but this comment is not about that. Just the general rule.

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