This is an 'At a glance' freeview guide to to Homeworking rates and allowances:

What tax-free allowances are there for working from home? What allowances can be paid to homeworking employees?

Fixed rates for homeworking are agreed by HMRC: these amounts can be paid by employers to their homeworking employees to reimburse them for the additional costs of things such as light and heat used when homeworking. 

Alternatively, employees may be able to claim actual costs of homeworking if wholly, exclusively and necessarily incurred or in job-related accommodation. See Working from home: employer/employee

These are the maximum amounts that may be paid by an employer, without requiring a receipt, or evidence of expenditure by the employee.

Year Rate per week
From 6 April 2020

£6 (or £27 per month)

From 6 April 2012

£4 (or £18 per month)

From 6 April 2008 to 5 April 2011

£3

From 6 April 2007

£2

 

If higher amounts are paid these need to be evidenced by receipts, and the employer must disclose amounts reimbursed on form P11D, unless there is a specific dispensation in place (pre 5 April 2016) or they are approved under the new Exemption for paid and reimbursed expenses (post 5 April 2016).

COVID-19

The COVID-19 Homeworking exemption to Income Tax & NICs where the employer reimburses home office equipment expenditure will be extended until 5 April 2022.

HMRC has provided guidance for employees who are homeworking due to the coronavirus crisis, see COVID-19: Working from home.

Comments (3)

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If an employee works from home in the gig economy (i.e. may have several employers, can that employee claim £6 per week home allowance from each employer) or is the home office allowance shared between employments on a pro rata basis?

If an...

If an employee works from home in the gig economy (i.e. may have several employers, can that employee claim £6 per week home allowance from each employer) or is the home office allowance shared between employments on a pro rata basis?

If an employee is working part time (eg one day per week), does the employer pay the whole home working allowance of £6 per week, or pro rata for no of days worked each week

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Comment was last edited about 4 months ago by Nichola Ross Martin Nichola Ross Martin
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How does an employee claim this £27 per month from HMRC - is it an annual allowance or monthly or even weekly?

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You can claim via self assessment or online, or your employer may chose to reimburse you directly, see See https://www.rossmartin.co.uk/employers/employee-expenses/134-working-from-home-employeree

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