Covid-19 - Tax Relief for Additional Cost of Working from Home

Employees who are directed by their employers to work from home are entitled to some relief for additional household expenses incurred such as heat, light, water and business phone calls.  The Revenue have confirmed that those affected by COVID are considered in this category. 

As it is difficult sometimes to quantify these additional costs and whether they exclusively relate to work rather than private purposes, for 2020/21 employers are able to make a tax-free round sum payment of £6 per week  (it was £4 for 2019/20). 

Employees whose employers do not make this payment can claim a tax deduction on their tax return for the same amount.

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Alison Asher