A reminder about working from home allowance

By DTE Business Advisers

12 Feb 2021

office-work-1149087_640.jpg

With the tax year end soon upon us, it is worth thinking about whether those workers who have been working at home since the beginning of April should qualify for the weekly working at home tax free allowance. As mentioned in our earlier update, this allowance is for homeworking employees to cover additional arising costs such as extra heating, light, etc., and employees do not need to keep records or invoices for this allowance.

If as an employer you wish to pay the £6 per week, this can be paid for all employees who have worked from home for at least some of the time since 6 April 2020 as a result of restrictions, lockdowns and the like. For a full year, the tax-free payment for each employee would be £312 (6 x 52 per weeks). If you do not pay this allowance to employees for a full year period, you can calculate it on a weekly basis at a rate of £6 per week.

Alternatively, you can suggest to your employees that they contact HMRC and complete a very simple online application to have their code numbers revised to include a tax allowance of £312. If employees proceed with this online application at an early date, from experience, it is dealt with very promptly by HMRC and should hit tax code revisions and therefore payrolls either in February or March this year.

If you wish to discuss this particular matter please do not hesitate to telephone Alan McCann in our tax department.

This article was originally published on DTE website at https://www.dtegroup.com/news/covid-19-business-support-hub/a-reminder-about-working-from-home-allowance/. 

Latest news

1

20 years of 'outstanding education for Nelson and Colne College Group Nelson and Colne College Group celebration

20 years of 'outstanding education for Nelson and Colne College Group

28 Jan 2025

2

Different roads open up for the Issa brothers Zuber and Mohsin Issa

Different roads open up for the Issa brothers

28 Jan 2025

3

Ex-Mercia investor joins LCC’s fhunded team to support increased VC deal activity Kiran Metha and Rory Southworth

Ex-Mercia investor joins LCC’s fhunded team to support increased VC deal activity

28 Jan 2025

4

Blackpool Post Office hotel plan Abington Street Post Office

Blackpool Post Office hotel plan

28 Jan 2025

5

Assets from long established Blackburn business to be sold Community and Business Partners in Blackburn with doors shut

Assets from long established Blackburn business to be sold

28 Jan 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
The Lancashire Festival of Business
FOB 315
Exhibitions
30 Jan 2025

The Lancashire Festival of Business

Impact Conferencing, Burnley, BB12 6QP

09:30 - 16:00

Skills Bootcamp in Procurement - Cohort 3
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Awards
14 Jan 2025 - 18 Mar 2025

Skills Bootcamp in Procurement - Cohort 3

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

The Marketing Meetup IRL: Lancashire
LBV Hub Event Image.png.png
LBV Hub Networking
30 Jan 2025 - 30 Jan 2025

The Marketing Meetup IRL: Lancashire

Strawberry Fields Digital Hub, Chorley, PR7 1PS

18:00 - 20:00

Police Apprenticeship event
Student Centre Autumn 2022.jpg.jpg
LBV Hub Social
12 Feb 2025 - 12 Jan 2025

Police Apprenticeship event

University of Central Lancashire, Foster Social Space , Preston , PR1 2HE

16:00 - 19:00

February Preston Tech Connection Meet-Up: Tech & Our Planet
PRESTON TECH CONNECTION jan.ai.png.png
LBV Hub Networking
12 Feb 2025 - 12 Feb 2025

February Preston Tech Connection Meet-Up: Tech & Our Planet

Society1 Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Amber River True Bearing Quarterly Investment Seminar
LBV Hub Seminars
13 Feb 2025

Amber River True Bearing Quarterly Investment Seminar

Mercure Blackburn Dunkenhalgh Hotel & Spa, Blackburn Rd, Clayton-le-Moors, Blackburn, Lancashire, BB5 5JP

16:00 - 18:00

The Business Network Central & East Lancashire
LBV Hub Networking
13 Feb 2025 - 13 Feb 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Sub36 Networking - Behind the beans
Sub36 Social1200Atkinsons New
Networking
14 Feb 2025

Sub36 Networking - Behind the beans

Atkinsons Speciality Coffee, Lancaster, LA1 1 EX

09:00 - 11:30

National Apprenticeship Week 2025 Celebration - Business Breakfast Showcase
Student Centre Autumn 2022.jpg.jpg
LBV Hub Networking
14 Feb 2025 - 14 Jan 2025

National Apprenticeship Week 2025 Celebration - Business Breakfast Showcase

Media Factory , Preston, PR1 2HE

08:00 - 10:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Employment Law, Tax and Payroll Update - East Lancashire
Employment updates - LinkedIn East Lancs-01.png.png
LBV Hub Seminars
26 Feb 2025 - 26 Feb 2025

Employment Law, Tax and Payroll Update - East Lancashire

Accrington Stanley Football Club, Accrington, BB5 5BX

08:00 - 10:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV120 Online Graphic 1
Subscribe now

Weekly news bulletin