Covid working from home tax relief

[Dave12335]

Hi tax friends

Useful article here : https://www.att.org.uk/home-sweet-home-–-tax-relief-home-working

If my office is shut so I’m having to work from home, and my employer pays zero expenses, then it looks like I can get expense relief, for a flat £18 a month (pro rated from when the office shut). Any pitfalls ?

Cheers all

Dave

[maths]

You state employer not paying/reimbursing expenses in which case the £18/month deal doesn't apply.

You will see the article states: "If an employer does not choose to reimburse some or all of the homeworking employee’s extra expenses, then the employee is not automatically allowed tax relief on their extra costs. Tax relief for extra costs is only given if such costs are incurred wholly, exclusively and necessarily for the employee’s work.

[Dave12335]

You sure about that ?

My reading is that’s the point of Option 2: Employee seeks tax relief section...

[Dave12335]

https://www.taxadvisermagazine.com/article/help-home-work

Essentially the legislation provides a deduction for costs incurred by those who have to work at home (ITEPA 2003 s 336).

The requirements of S336 ITEPA 2003 that the expenses for those employees that have to work at home, must be incurred ‘wholly, exclusively and necessarily’ ‘in the performance of’ the employee’s duties, means that relief can only be allowed for:

the additional unit costs of gas and electricity consumed while a room is being used for work.
the metered cost of water used ‘in the performance of the duties’ (if any)
the unit costs of business telephone calls (including internet access).
Where it is not practical to calculate these extra costs, then a claim for £18/month for monthly paid employees (£4/week otherwise) can be made without having to justify the figure. This does not cover the cost of business calls for which an additional claim can be made based on actual costs.

[Dave12335]

Anyone any thoughts ?