Home working allowance

The home working allowance will be of interest to employees who work from home.

Flexible working is becoming the new normal in the face of long, busy commutes, more working mums, and a push for a better work life balance.

But when you work at home you are spending your own money on electricity, gas, energy, water and telephone bills. Yet these costs are being incurred for a business purpose.

If home working is specified as part of your job then you qualify. If it isn’t specified then you need to get a home-working agreement with your employer to qualify.

If you qualify then your employer can contribute towards the expenses listed earlier – £4.00 per week or more if you can show that you had to spend more than that. However, if your employer doesn’t contribute you cannot claim the allowance.

Importantly for the employee, the money you receive from your employer is tax free. You won’t have to pay income tax or national insurance contributions on the amount you get from your employer.

For more information read the government’s working from home guidelines.