Working from Home Allowance (WFHA) in the UK:
The Working from Home Allowance (WFHA) is a tax relief introduced by the UK government to provide some compensation for the additional costs incurred when working from home. Here are the key points:
Eligibility:
The WFHA is applicable to employees who have been required to work from home due to the COVID-19 pandemic.
This allowance is not intended for those who choose to work from home.
Fixed-Rate Deduction:
The WFHA provides a fixed-rate deduction of £6 per week for eligible individuals.
This amount is designed to cover additional costs such as heating, metered water, and business calls.
Simplified Process:
The process is simplified, and individuals do not need to provide evidence or receipts to claim this allowance.
For those working from home for part of the week, the fixed-rate deduction can still be claimed.
Claiming the Allowance:
Individuals can claim the WFHA when filing their annual self-assessment tax return.
For those who do not usually complete a tax return, there are simplified processes to make a claim.
Duration:
As of the last update, the WFHA was initially introduced as a temporary measure in response to the COVID-19 pandemic. However, it's advisable to check for any updates or extensions to this allowance.