Working from Home Tax Allowance

Habib2342

Evening all,

So i phoned HMRC on Friday asking what is the status of my working from home allowance(p87 form ). They said it has been approved and that my tax code will change from 1195L to 1226L. SO will i get the years allowance added on my payslip ? How do i work out the net impact on my monthly payslip?

thanks, 

MovingForwards

Use a salary calculator for a rough idea.
Think it's about £4 or £5 extra a month I get.

Sandtree

They have increased your tax free income allowance and so your net take-home pay will increase. So if your income was £25k you'd get just over an extra £5 a month take-home assuming no other deductions 

Habib2342

Is there anyway of stopping this and getting the full £312 paid to me upfront ?

Sandtree

Habib2342 said:

Is there anyway of stopping this and getting the full £312 paid to me upfront ?

No and you'd only get £312 if you paid 100% tax.

You get £6/week tax relief so if you are a basic rate tax payer thats £6 x 20% = £1.20 per week more take home pay.

Given a laptop costs about 5p per day to run and all these additional costs for being at home are being offset by not having the cost of commuting into the office etc its a small but generous allowance.

Habib2342

100% TAX meaning if you worked the whole of the 2020/21 tax year ?

MovingForwards

It's tax relief on £6, not an extra £6 in your pocket each week.

You are never going to get £312 a year extra, regardless of how long you work for this tax year.

https://www.gov.uk/government/news/working-from-home-customers-may-be-eligible-to-claim-tax-relief-in-2021-to-2022

Sandtree

Habib2342 said:

100% TAX meaning if you worked the whole of the 2020/21 tax year ?

No, as in you receive no income at all because 100% is paid to HMRC as tax... its is not a tax free £6 allowance its tax relief on £6 per week so if you are a basic rate tax payer you pay 20% tax so its worth £1.20 per week

Dazed_and_C0nfused

Habib2342 said:

Is there anyway of stopping this and getting the full £312 paid to me upfront ?

Only your employer can pay you £312.

HMRC allow tax relief on £312 so you are going to be disappointed!