With the increase in working from home being due to the Covid lockdown it may be that employers are not able to afford to offer a working from home allowance. However, as the economy starts to recovers it may be an attractive option for staff and organisations alike.
If you are required to work from home on a regular basis, employers can pay you £26 per month (of £6 per week). This is an increase from £18 a month, and it is tax free as it is in recognition of the costs you may incur incidentally to this – for example the increase in bills.
This is particularly useful for owner-directors who work from home instead of hiring an office as it simplifies the need to calculate a ‘fair’ figure for the cost of the head office being at their home – although you will want to check with your accountant how much you might miss out from this.
If your firm is looking at changing it’s working practices this could be a nice way of sweetening things for your staff.