Homeworkers tax and NI free allowance increase from 6th April 2020

Working from home?

Where an employer chooses to pay an allowance for their workers who are working at home under a home working arrangement, the allowable amount which is tax and NI free (with no requirement for expense recording) is being raised from the current flat rate £4 per week (£18 per month) to a new £6 per week (£26 per month) from 6th April 2020.

This measure is to assist employees with the additional expenses incurred as a result from working at home, such as electricity and heating.

This may be a measure that assists during the current crisis with #COVID19 #coronavirus where workers are being asked to work from home.

If an employer does not pay the allowance, then the amount can be declared on the annual self assessment return to claim a refund.


This increase announcement formed part of the HMRC announcements from #Budget2020.

PAYadvice.com 19/3/2020

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