Northern HR News

HMRC Update: New Evidence Rules for £312 Working From Home Allowance

Effective 14 October 2024

If you’re currently claiming the £6 per week (£312 per year) working from home allowance through your tax return or payroll, there’s an important update from HMRC you need to know.

From 14 October 2024, HMRC will require formal evidence of a contractual obligation to work from home in order to approve claims.

What’s Changing?

The £6 per week allowance was introduced to support those with additional homeworking costs. Previously, many directors and employees claimed it without issue, but HMRC is now tightening the rules:

  • You must be contractually required to work from home to claim the allowance.
  • That requirement must be in writing: this could be part of your employment contract, a service agreement, or a board resolution.
  • The arrangement must be regular and ongoing, HMRC expects this to be at least two days per week.
  • Informal or voluntary homeworking arrangements won’t be eligible.

How Does This Affect Directors?

If you’re a director working from home and claiming the flat-rate allowance, HMRC now expects a board resolution to support your claim. This needs to:

  • Clearly state that homeworking is required for your role.
  • Outline the expected number of days per week.
  • Be in place before any claims are made.

At Northern Accountants, we can help you get this sorted quickly, ensuring you’re protected before the new rules take effect.

Higher Claims? You’ll Need More Evidence

You can still claim more than £6 per week if your actual homeworking costs are higher, but you’ll need:

  • A detailed breakdown of expenses
  • Proper apportionment
  • Receipts and evidence of costs

This route can be beneficial but needs to be handled carefully. Our team can advise on whether a higher claim is worth pursuing based on your situation.

What You Should Do Now

We recommend:

  1. Reviewing your employment contract or service agreement – is homeworking officially required?
  2. Adding a board resolution if you’re a director – we can help you draft this.
  3. Tracking working patterns – especially if your homeworking is part-time.
  4. Getting support if you’re unsure – we’re here to help.

Work Need Help?

If you’re not sure whether your current arrangements meet HMRC’s requirements, or you want to make sure you’re still eligible to claim the allowance, get in touch with us.

hello@northernhr.co.uk
 0113 218 9552

We’ll make sure you’re compliant, claiming correctly, and not leaving anything on the table.