New claim required for £6 per week exemption
Employees. Many people have been required to work from home during the coronavirus crisis. This has led to an increase in the number of people claiming the £6 per week exemption for expenses paid by the employer to reimburse the additional costs of working from home, e.g. electricity gas, etc.
Pro advice. The exemption is usually only applicable where an amount is actually paid to the employee by the employer. However, EIM32815 (see Follow up ) confirms that there is a temporary relaxation in place due to coronavirus, so any employee can claim a tax-free deduction from their earnings - even if they receive nothing from their employer. This would generally be given by a PAYE coding adjustment.
New claim. In many cases, relief given through a PAYE code is automatically rolled forward, e.g. regular amounts donated via gift aid. However, for 2021/22, employees still required to work from home will need to contact HMRC to make a new claim. Advise clients to pass this information on to their employees accordingly.
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