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PrimeGlobal member firm Simmons Gainsford looks at the tax relief available to employees due to Covid-19 and the eligibility requirements. 

The Coronavirus lockdown has obviously caused a significant increase in employees required to work from home, and those employees may be eligible to tax relief on certain items relating to their work.

Where a worker agrees in advance with their employer that they are required to work from home, that worker can claim tax relief for costs which are “wholly, exclusively and necessarily” in the performance of their role. 

These costs could include stationary and printer paper/ink, but could also include larger costs such as office chairs and desks. HMRC also allow a flat allowance to be claimed to give tax relief for increase other home costs, this home working allowance was £4 per week up to 5 April 2020, and £6 per week from 6 April 2020 onwards.

Tax relief is not available where the home working agreement is optional, which would rule it out in many situations. However the coronavirus lockdown has changed working practices for many businesses, where the only option available is for the employee to work from home or be furloughed.

Tax relief can be claimed by submitting form P87 to HMRC or through your tax return if you submit one.

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Simmons Gainsford LLP

We provide a comprehensive range of services specifically tailored to the needs of individuals and businesses seeking financial success and security. We consider ourselves trusted advisors with entrepreneurial flair. With 12 partners and over 100 staff within the group we are able to draw on a wide range of expertise whilst maintaining a high level of personal contact with our clients who range from owner managed businesses to PLCs and High Net Worth Individuals.

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