£6 tax relief per week for home working costs - a pittance?

[suggestionsplease1]

I'm just trying to get my head around this - so if you're forced into home working due to Covid you can claim tax relief on £6/week for additional expenses due to extra heating/ electricity use....so for a 20% tax payer that amounts to getting back £1.20 per week?!

My additional expenditure on gas/electric due to Covid will far exceed that, as I imagine most people's will....is this not a bit of a cop out?!

There seems to be something about employers can make this additional £6 payment per week to staff as well - that hasn't happened for us - is it really happening for employees elsewhere?

Finally, I'm going to try to put in more accurate figures as I have to fill in self assessments anyway, but I am hampered by the fact that I don't have a smart meter. I thought one way to do it would be to compare a previous year's expenditure when I wasn't working from home with the present year's expenditure - would that be acceptable as proof of additional costs do you think? (I know there's only going to be about 6/7 weeks worth of homeworking to account for for this self assessment but it will be more relevant for next years 31st Jan deadline.)

[mummy2oli]

I have not even claimed tax relief. I’m saving over an hour commute and around £60 in expenses for travelling.

[clary]

I think there are savings though, as others say.

The CE of my workplace drives 30+ miles each way a day to get to work, so he has saved loads. My commute is only 10 mins, but even then, it's cheaper just to walk downstairs.

Lunch is cheaper as you make it youself (yes I know you can take sandwiches to work but I don't always) also no buying of coffee from machine.

Clothes - no need to dress smartly so perhaps savings there. If you usually buy a new pair of work shoes or boots every winter you have saved there.

I am not a massive fan of wfh to be honest as I find I miss the social interaction; but there is no doubt I have saved money this last year (and I am actually in the office a couple of days a week).

I'll take the tax rebate for sure but I am certainly not out of pocket overall anyway.

[Redrivershore]

DH wfh and didn't save anything as he walks or cycles, takes his lunch and wears his normal clothes he would wear at home, luckily I am retired so heating is on anyway, I can see for some it would have cost much more than the £1.20 a week that is on offer,

[m0therofdragons]

I’m just grateful we have jobs!

[Kitkat151]

@m0therofdragons

It’s £6 a week so how are you making it £1.20? Sorry I’m confused by the maths.

No it’s £1.20 a week ( basic tax payer) if you are claiming tax relief from government...
It’s £6 extra tax free if your boss is prepared to pay it .....but most don’t....certainly not in the public sector

[TitsOot4Xmas]

@arethereanyleftatall

Wow, I can't believe they're giving a rebate for this. Unbelievably generous given how much we all need to pay back. I can't imagine that there are very many people at all who are paying more out in electricity than they're getting back through not paying travel costs and time. Wow. Yabu.

It’s always existed.

[Whatdoyoudowhendemocracyfails]

@arethereanyleftatall

Me? I'm getting nothing because I was newly self employed. Haven't had anything since March. I think this is kind of my point. So many people have lost our so massively in this - either they're dead, or their relatives are, or they're redundant, or they can't work - that to complain about heating costs seems really reallly churlish.

Wasn’t your original point though. You said you couldn’t believe there were people who weren’t saving money on their travel costs. There are lots of us.

[EnglishGirlApproximately]

I'm with you OP. I'm saving nothing on commuting or lunches, clothing etc as I normally have a company credit card, meal allowance and travel expenses paid. WFH for months is costing me. Of course I'm grateful to have a job but I've had 4 months furlough, now only back part time and extra expenses. Its far from ideal.

[MyGazeboisLeaking]

I do get that being 'forced' to work from home for some people means increased bills, but i would think they are in the minority?

In my situation, I'm working upstairs in a spare room mainly doing computer & screen work.

I use a heated throw that plug in and put over my knees so I don't need the heating on in that room.

I have teenagers who are not at school at the moment so they are home too.

[Herbie0987]

I do not pay tax so am unable to claim the extra allowance, my employer will not be making any payments for staff in my situation. I am saving on fuel and time by not travelling to work. There are winners and losers in everything, I am happy I still have a job.

[suggestionsplease1]

@sashagabadon

I think it’s a bit much to be complaining. I still have to go to work but my kids are at home doing their school work and so I will have much higher bills but with none of the commuting savings. I’m just sucking it up as I can hardly leave my kids in the cold all day ( and my daughter knows how to turn on - and up - the heating anyway
Plus you’ll get people at home as they have lost their job now with higher heating costs. Bet they would love to be wfh.

Yes very true. Point taken, I can see how in general this will not be a big issue for many people compared to other things that are happening, or other alternatives to their situations.

I guess it just depends on individual circumstances - my setup means it is proportionally big change for me compared to my normal working circumstances (no I don't spend money on lunches/ coffees as I always take flasks/ homemade stuff in, or much money on work clothes which are quite casual and the same as I wear the rest of the time.)

Viewed in terms of what it purports to be trying to do (make up for some of the additional expenditure for home working costs) it seems a pretty poor attempt at that, but I recognise for most the big financial picture is a different situation.

[MyGazeboisLeaking]

@suggestionsplease1

As others have said, it's not a new allowance created for current circumstances, but I do agree with you that as the allowable DOES exist, it should be a more accurate reflection of what it's supposed to address.

[16purplecolour16]

I thought it was an additional £6.00 but is actually £1.20 in your pocket per week. Following Martin Lewis ‘Money Expert’ website.

[16purplecolour16]

It’s a ridiculous sum.

[MissMarpleDarling]

YABU OP.

[Moondust001]

The element that nobody has taken into account is "how much are employers saving?". Mine is saving so much that they have decided, without consultation, to sell off property and move most people to working from home almost exclusively forever. That is transferring the cost of business premises onto employees; and has a lot of other implications around health and safety, insurances, mental wellbeing and so on. And their employees will get the "benefit" of now paying for their employers office costs. In my opinion, if an employer does that, I think there should be an obligation on the employer to pay the allowance of £6pw - why should the state and their employees be subsidising their running costs?

[HazyJuly]

@m0therofdragons

But you save on commuting

Some people are worse off as a result of no travel

I am- I was home based and did 14,000 business miles a year with the first 10,000 paid at 45p a mile. I no longer get this and so I am about £2500 a year worse off (£4,500 less the actual petrol costs)

[SmudgeButt]

I keep wondering how much more people can expect the government to pay out. And willing everyone will be when in a year or so the basic tax goes up to 25% or more to help recoup it all.

(yes I've taken the £6 tax relief and yes I'm saving significantly by not paying for petrol or lunches 5 days a week.)

[user184628462]

@EastWater

It's tax relief OF £6 a week, not ON.
I applied recently and they changed my tax code. I'll pay about £300 less tax between now and end of the tax year as I've been WFH since March.

No, it's relief on £6.

Same as with mileage payments. Employers can pay up to 45p per mile but if your employer only pays 25p per mile, you can only claim tax relief on the difference of 20p per mile. HMRC doesn't reimburse you the difference, only the tax relief on the difference.

Employers can pay up to £6 per week tax free. If they don't you can claim tax relief on £6 per week. The amount adjusted in your tax code is not the tax relief, it's showing you get an extra amount of £312 that you will not be paying tax on. I.e. Tax relief on £6pw.

[LickEmbysmiling]

Electric blanket

[Kazzyhoward]

Considering there are 3 million self employed/freelancers who've been excluded from the Govt's covid support schemes, many of whom can't work at all, and are losing their savings, their businesses and their homes, I think feeling hard done by about a small amount of extra power costs is quite ridiculous.

[lljkk]

My employer is going to be an additional £45million in debt (due to Lockdown etc). They don't have premises they can sell (or lease out).

I hate self-assessment, I'd pay £6/week not to have to do it!

[user184628462]

@Kazzyhoward

Considering there are 3 million self employed/freelancers who've been excluded from the Govt's covid support schemes, many of whom can't work at all, and are losing their savings, their businesses and their homes, I think feeling hard done by about a small amount of extra power costs is quite ridiculous.

Considering there are people dying...

Let's not do the whole competitive suffering bullshit.

[luxxlisbon]

If you aren't having to go to the office you aren't paying for the train, or petrol, or wear and tear on your car, or work lunches, or snacks/coffees while out and about because you are stressed.
Overall most people who are still working are financially better off for the year working at home vs commuting so YABU to complain about £6 extra tax relief when overall you haven't incurred more costs.

[Chimeraforce]

Yanbu. It costs me more to wfh. I had no working costs woh.
I haven't saved money on anything so my wage is actually less now in the winter.
Many have saved on childcare and commuting costs, so they're quids in.