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Working From Home - Employer Position

Can an employer pay the monthly allowance for the whole year?

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We had a few weeks at the start of lockdown where everyone was either working from home or furloughed; people returned to the office at their own pace and everyone is (for now) back in the office.  I have no question about the situation where an employee claims the £312 full year deduction for WFH even though they might have only worked at home for a few weeks.

But what is the position for an employer who is now considering paying an allowance for WFH?  The employee would no longer be able to claim the WFH allowance if the employer is reimbursing them, but is the employer allowed to pay the WFH allowance for the full 2020-21 tax year, even though the employee only worked from home (at least until now) for a few weeks?

Thanks

Tim

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By Duggimon
14th Dec 2020 16:52

The employer can pay their staff whatever they like for working from home, contracts allowing. This amount is taxable.

The employee has £312 of a tax deductible allowance to set against this. If the employer happens to pay £312, then clearly no tax is due.

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By paul.benny
14th Dec 2020 18:27

+1

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