Working from home has become a new normal after the outbreak of the coronavirus pandemic. Despite the easing of the lockdown announced by the government many employers want to maintain the social distancing and have their employees working from home. For example, Leon, an IT specialist who is used to working from home has been asked to continue working from home for another year despite the government's decision to ease the lock down in UK.
Adrian, who was working in an investment firm says working he would not prefer working from home but now after the outbreak of coronavirus pandemic it has become a necessity due to self-isolation.
You can claim the expenses if the following applies to you:
- You are working from home because your employer wants you to due to coronavirus
- You are not furloughed by your employer
The expenses you can claim are following:
- Home Office equipment: Home office equipment would include a computer, laptop, desk, chair, printer, scanner
- Other Office Supplies: Such as paper for the printer, stationery which is necessary to carry out the business.
- Heating and Light
- Broadband and Internet Connection: If as an employee you were already paying for internet connection, you cannot claim it as an expense, however, if your work requires you to have an internet connection and you do not have one then you can claim it as an expense and your employer will reimburse it for you and this will be tax free as long as the use of the internet is limited to work.
- Hotel Expenses: If an employee needs to find an accommodation because they cannot self-isolate themselves at home these expenses will be reimbursed by the employer.
The above expenses are tax free Tax fee means that HMRC will not collect tax and NI due on any reimbursed payments made from 16 March 2020 (the date the government recommended working from home) to the date these regulations take effect.
To make things simple HMRC allows you to claim a flat rate allowance of up to £ 6 per week or £26 per month if the employee is paid monthly. This amount can be reimbursed by the employer. It's not necessary to keep the receipts but I would recommend you to in case you need to show them to HMRC.
If you think that your additional expenses are more than £6 per week you can claim the additional costs through your Personal Tax Account.
By claiming expenses you might be able to some money on your taxes. We can claim certain expenses from the employers and if the employer does not reimburse a tax relief can be claimed directly from HMRC.
Other ways you can save money is through the following:
Salary Sacrifice Scheme: Salary Sacrifice is an arrangement through which you can give up on part of your salary for some non-cash benefits. This reduces your income and therefore reduces the tax that you pay. Salary Sacrifice Arrangements in this time of crisis. However, it will affect job retention scheme
Loan: If you are going through any financial difficulty your employer can help you by providing a loan of up to £ 10 000 in a tax year. This is a tax free loan.
If you need guidance in how to claim the expenses from HMRC you can contact Taxaccolega, Accountants based on Croydon, surrey and south hall at 020 8127 0728 .We will provide you accounting services at reasonable costs and will also provide you will accounting advise tailored to your business.