Working from home allowance - non taxpayer
Working from home allowance - non taxpayer
Author
Discussion

anonymous-user

Original Poster:

76 months

Friday 18th December 2020
quotequote all
Hi Chaps,

My sister, who works for the NHS, has been obliged to work from home because of the COVID-19 situation. I believe that a small allowance of £6 a week is claimable in these circumstances, by way of an increase in tax code - at least for those who pay tax.

My sister, however, earns just below the personal allowance figure, and consequently pays no income tax. She has been told by her HR department that she can't therefore claim this allowance.

Is this correct, or should she request the payment directly from her employer?

It would seem most unfair that this allowance would not be made available to those who can least afford it :-(

CaptainSlow

13,179 posts

234 months

Friday 18th December 2020
quotequote all
It isn't an allowance as such, it is a tax code amendment (increase). If she doesn't pay any tax then they'll be no impact for her.

Mr Pointy

12,769 posts

181 months

Friday 18th December 2020
quotequote all
How much is she saving in travel costs by not having to go to work?

anonymous-user

Original Poster:

76 months

Friday 18th December 2020
quotequote all
Mr Pointy said:
How much is she saving in travel costs by not having to go to work?
About the same amount as her tax-paying colleagues.

Countdown

47,112 posts

218 months

Friday 18th December 2020
quotequote all
280E said:
Hi Chaps,

My sister, who works for the NHS, has been obliged to work from home because of the COVID-19 situation. I believe that a small allowance of £6 a week is claimable in these circumstances, by way of an increase in tax code - at least for those who pay tax.

My sister, however, earns just below the personal allowance figure, and consequently pays no income tax. She has been told by her HR department that she can't therefore claim this allowance.

Is this correct, or should she request the payment directly from her employer?

It would seem most unfair that this allowance would not be made available to those who can least afford it :-(
It's correct in that she can only get a tax rebate if she's paying tax.

She can certainly ask her employer for the extra £26 pcm but the chances of her getting it would be slim to none.

p.s its not really got anything to do with her HR DEpartment. She needs to contact HMRC, they'll amend the tax code and notify her Employers. It might be worth doing anyway just in case she goes over the PA threshold before the end of the FY year.

anonymous-user

Original Poster:

76 months

Friday 18th December 2020
quotequote all
Thanks Countdown.

I appreciate that it's not an 'allowance' as such, but has the same net benefit to those who do pay tax.

It seems somewhat discriminatory that our lower-paid 'NHS heroes' cannot benefit in the same way as those higher up the food chain.

Pieman68

4,275 posts

256 months

Friday 18th December 2020
quotequote all
I may be wrong but I believe it's £6 a week that you can claim tax relief against, rather than an actual £6 per week payment

So in effect, as a taxpayer it would give a tax saving of around £1.20 per week and as a non taxpayer there is no benefit to claim

Pothole

34,367 posts

304 months

Friday 18th December 2020
quotequote all
easy enough to check eligibility for tax relief: https://www.tax.service.gov.uk/claim-tax-relief-ex...

anonymous-user

Original Poster:

76 months

Friday 18th December 2020
quotequote all
Pieman68 said:
I may be wrong but I believe it's £6 a week that you can claim tax relief against, rather than an actual £6 per week payment

So in effect, as a taxpayer it would give a tax saving of around £1.20 per week and as a non taxpayer there is no benefit to claim
Thanks, Pieman - I'll let her know!

Pothole

34,367 posts

304 months

Friday 18th December 2020
quotequote all
280E said:
Pieman68 said:
I may be wrong but I believe it's £6 a week that you can claim tax relief against, rather than an actual £6 per week payment

So in effect, as a taxpayer it would give a tax saving of around £1.20 per week and as a non taxpayer there is no benefit to claim
Thanks, Pieman - I'll let her know!
You're correct, Pieman.

anonymous-user

Original Poster:

76 months

Friday 18th December 2020
quotequote all
Thanks for the replies - much appreciated!

My sister was on the phone for half an hour last night about this - sounds like she might have got the actual amounts involved a bit muddled....

TwigtheWonderkid

47,847 posts

172 months

Friday 18th December 2020
quotequote all
280E said:
Thanks Countdown.

I appreciate that it's not an 'allowance' as such, but has the same net benefit to those who do pay tax.

It seems somewhat discriminatory that our lower-paid 'NHS heroes' cannot benefit in the same way as those higher up the food chain.
You could also argue that it's unfair that 40% taxpayers get twice as much money as 20% tax payers.

Caddyshack

13,759 posts

228 months

Friday 18th December 2020
quotequote all
TwigtheWonderkid said:
280E said:
Thanks Countdown.

I appreciate that it's not an 'allowance' as such, but has the same net benefit to those who do pay tax.

It seems somewhat discriminatory that our lower-paid 'NHS heroes' cannot benefit in the same way as those higher up the food chain.
You could also argue that it's unfair that 40% taxpayers get twice as much money as 20% tax payers.
40% tax payers do not necessarily get twice as much money as 20% tax payers, in fact, they have to get paid much more gross to end up with double net for net so you could also argue that an uncapped 40% is not fair as the cost of each human may be the same but the higher earners have to add more to the pot.

PorkInsider

6,350 posts

163 months

Saturday 19th December 2020
quotequote all
280E said:
Thanks for the replies - much appreciated!

My sister was on the phone for half an hour last night about this - sounds like she might have got the actual amounts involved a bit muddled....
I received a cheque from HMRC for (I think) £134 when I filled in the online form to claim the WFH allowance. I permanently WFH but was spurred on to bother filling the form in when the allowance was publicised more due to COVID.

As Twig mentioned, being a higher rate payer means I'm benefitting even more. I'm not sure how it sits with me, to be honest, but it's not much different to other allowances, such as that available if you have a work uniform you have to self-launder...

I really, really don't need the £134 by any means so, especially as it's Christmas, I'd very happily pass it on to your sister, via you, as I appreciate her work as a low earner in the NHS.

Just PM me.

beer

PorkInsider

6,350 posts

163 months

Saturday 19th December 2020
quotequote all
Caddyshack said:
TwigtheWonderkid said:
280E said:
Thanks Countdown.

I appreciate that it's not an 'allowance' as such, but has the same net benefit to those who do pay tax.

It seems somewhat discriminatory that our lower-paid 'NHS heroes' cannot benefit in the same way as those higher up the food chain.
You could also argue that it's unfair that 40% taxpayers get twice as much money as 20% tax payers.
40% tax payers do not necessarily get twice as much money as 20% tax payers, in fact, they have to get paid much more gross to end up with double net for net so you could also argue that an uncapped 40% is not fair as the cost of each human may be the same but the higher earners have to add more to the pot.
Pretty sure Twig means that a 40% taxpayer claiming the allowance gets twice as much refunded as a 20% payer.

Benrad

653 posts

171 months

Saturday 19th December 2020
quotequote all
PorkInsider said:
I received a cheque from HMRC for (I think) £134 when I filled in the online form to claim the WFH allowance. I permanently WFH but was spurred on to bother filling the form in when the allowance was publicised more due to COVID.

As Twig mentioned, being a higher rate payer means I'm benefitting even more. I'm not sure how it sits with me, to be honest, but it's not much different to other allowances, such as that available if you have a work uniform you have to self-launder...

I really, really don't need the £134 by any means so, especially as it's Christmas, I'd very happily pass it on to your sister, via you, as I appreciate her work as a low earner in the NHS.

Just PM me.

beer
Nice one! Merry Christmas!

CharlesElliott

2,247 posts

304 months

Saturday 19th December 2020
quotequote all
PorkInsider said:
I received a cheque from HMRC for (I think) £134 when I filled in the online form to claim the WFH allowance. I permanently WFH but was spurred on to bother filling the form in when the allowance was publicised more due to COVID.

As Twig mentioned, being a higher rate payer means I'm benefitting even more. I'm not sure how it sits with me, to be honest, but it's not much different to other allowances, such as that available if you have a work uniform you have to self-launder...

I really, really don't need the £134 by any means so, especially as it's Christmas, I'd very happily pass it on to your sister, via you, as I appreciate her work as a low earner in the NHS.

Just PM me.

beer
bow

TwigtheWonderkid

47,847 posts

172 months

Saturday 19th December 2020
quotequote all
PorkInsider said:
Caddyshack said:
TwigtheWonderkid said:
280E said:
Thanks Countdown.

I appreciate that it's not an 'allowance' as such, but has the same net benefit to those who do pay tax.

It seems somewhat discriminatory that our lower-paid 'NHS heroes' cannot benefit in the same way as those higher up the food chain.
You could also argue that it's unfair that 40% taxpayers get twice as much money as 20% tax payers.
40% tax payers do not necessarily get twice as much money as 20% tax payers, in fact, they have to get paid much more gross to end up with double net for net so you could also argue that an uncapped 40% is not fair as the cost of each human may be the same but the higher earners have to add more to the pot.
Pretty sure Twig means that a 40% taxpayer claiming the allowance gets twice as much refunded as a 20% payer.
Yes, that's exactly what I meant.

Caddyshack

13,759 posts

228 months

Saturday 19th December 2020
quotequote all
TwigtheWonderkid said:
PorkInsider said:
Caddyshack said:
TwigtheWonderkid said:
280E said:
Thanks Countdown.

I appreciate that it's not an 'allowance' as such, but has the same net benefit to those who do pay tax.

It seems somewhat discriminatory that our lower-paid 'NHS heroes' cannot benefit in the same way as those higher up the food chain.
You could also argue that it's unfair that 40% taxpayers get twice as much money as 20% tax payers.
40% tax payers do not necessarily get twice as much money as 20% tax payers, in fact, they have to get paid much more gross to end up with double net for net so you could also argue that an uncapped 40% is not fair as the cost of each human may be the same but the higher earners have to add more to the pot.
Pretty sure Twig means that a 40% taxpayer claiming the allowance gets twice as much refunded as a 20% payer.
Yes, that's exactly what I meant.
Sorry, got wrong end of the stick. I would see it that they had lost more Tax so got more back?