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Allowable Expenses for working from Home Employees including Company directors

17 - 04 - 2020

Allowable Expenses for Working from Home

 

Employees including Company Directors

 

HMRC does allow employees to claim of £6 per week or £26 per month from 06.04.2020 (prior to 06.04.2020 £4 per week or £18 per month) without receipts 

Allowable Expenses for Working from Home

 

Employees including Company Directors

 

HMRC does allow employees to claim of £6 per week or £26 per month from 06.04.2020 (prior to 06.04.2020 £4 per week or £18 per month) without receipts . There are a number of conditions:

 

1.      You cannot claim if you choose to work from home. This means that if you have an office or premises where the business is based and you can work from there but choose not to you cannot claim.

 

2.      You cannot claim if you work at home voluntarily. This means that if you have voluntarily agreed to work at home with your employer you cannot claim.

 

3.      You must be doing work for your employer at home not just be based at home.

 

4.      Directors cannot include work that they perform for the administration of their company, for example raising invoices, corresponding with HMRC or an accountant, as actual work for these purposes.

Alternatively you can claim for things to do with your work. For example the additional cost of gas or electricity associated with your work area.

 

You will need to find a reasonable method of dividing your costs between business and personal. You could work out the size of the work area in proportion to the rest of your home and time apportion the amount of time you use the area. You would then need to apportion the individual bills to assess any additional cost. You would need to keep these calculations and relevant documents as HMRC may challenge the calculations and the amounts claimed. HMRC may also look at the bills before and during the home working period to assess any increase in costs.

 

Please note you cannot claim for things that you use for both private and business use, for example, rent or broadband.

 

 

If you would like to discuss any of the issues noted above please contact us on:

 

01244 625 500 or 01978 364 000

contactus@foremansllp.com

 

Whilst all due care and attention has been taken in the preparation of these notes no liability

can be accepted for any omission or item contained therein.

 

Foremans LLP

April 2020



 

 

 

 

 

Foremans LLP Umberlla
Foremans LLP