Working from home – your employees can claim tax relief

Pound sign

HMRC have started writing to employers to tell them about tax relief available to employees for working from home.

Although they are writing to employers, this is a relief that employees must claim themselves directly from HMRC using the Tax Relief for Employees website. When employees make a claim, the tax they pay each month via your payroll will be reduced meaning that they receive more money.

The basic allowance is not much – only £6 per week from 6 April 2020. This gives basic rate taxpayers £1.20 of tax back per week, higher rate tax payers get £2.40. Employees might be able to claim more tax relief if they use their own money to buy things for their job. Employees will not be able to claim tax relief if their employer reimburses them.

With the increase in people working from home this year, HMRC have started a campaign to ensure that employees are aware. HMRC have reported that they have processed some fifty five thousand claims, out of approximately five million who could apply.

Employees who want to know more should visit HMRC where they can check their eligibility and make an online application. Alternatively contact us for more information on this and the other schemes to support business during coronavirus.

See our summary of the government’s Winter Economy Plan.

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on whatsapp

Other Insights

Electric cars can save you tax

Imagine being stood in the car show room, wondering whether you should buy an electric car. You are busy considering which model will suit you best and the sales team start telling you about the many benefits of buying through the company.

Read More »


You will be able to claim a deduction from your corporation tax bill if you invest in new productivity enhancing plant and machinery. The expenditure

Read More »

March 2021 Budget

The 2021 budget delivered a number of new grants, extensions to most of the existing schemes and the promise of tax rises in the future.

Read More »

This website uses cookies to ensure you get the best experience on our website.