Home Working Allowance in UK

We are introducing a new home working policy and are discussing various options for a Home Working Allowance.

Our original proposal was to set the allowance in line with HMRC guidance/limits. This would be an £18/month allowance (the max for tax relief) plus the cost of Broadband.

However, the business does not feel that this is sufficient and has requested a higher monthly amount. This would be subject to the usual Tax/NI deduction and paid via payroll.

Does anyone else operate a Home Working Allowance in this way?
If so how much is the allowance?
(How/why did you set this amount?)

Do you know if anyone published benchmark data on allowances like this?
Thanks in advance.

Comments (3)

We cover the cost of broadband and a telephone line but no other expenses for homeworkers.

This our approach-In circumstances where you cannot be provided with a work mobile phone or cannot access your softphone and you have to make work-related calls from your personal landline or mobile, you can submit a request for reimbursement of costs to your manager. However, you must have prior agreement from your line manager; calls must be kept to a minimum; and reimbursement will only be made on production of an itemised telephone statement.

Broadband services, heating, lighting and electricity allowances will not be paid, as the agreement to work remotely is a voluntary agreement.

Hi - we do not provide any allowance for utilities for homeworking, and in previous organisations have phased similar allowances out since broadband is now as 'essential' as electricity for may people. We do, however, allow a set amount to be expensed for office equipment for those classed as 'remote workers', i.e. they are fully home based. We still do not reimburse costs of utilities though.

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