Use of home allowance from multiple companies

[tbon]

Hi All,

I would like to ask your opinion about claiming use of home allowance (i.e. £6 / week) from multiple places.

• Assuming I'm a director of two limited companies, can I claim the allowance from both of my companies and would that be tax deductible personal income?
• Assuming I'm a sole trader and the director of one limited company, can I claim the allowance from both of my businesses and handle it as tax deductible income?

It doesn't feel right to accumulate home allowances this way, but I haven't found anything that would forbid it.

Looking forward to hear your thoughts!

 

[DontAsk]

It should be fine to claim for each business, but you can't be working full time for both businesses so you would need to apportion each claim for the time the home is used.

This is clearly explained in all the guides I have read, e.g. where a room is shared between the business and other use you cannot claim the full allowance.

 

[UK Contractor Accountant]

for self employed its not £6 per week tax claim - its based on hours worked for the simplified expenses claim or business % use of utilities bills for the room(s) used.

 

[Newchodge]

It should be fine to claim for each business, but you can't be working full time for both businesses so you would need to apportion each claim for the time the home is used.

This is clearly explained in all the guides I have read, e.g. where a room is shared between the business and other use you cannot claim the full allowance.

That makes sense when the claim is for actual usage, but what about when the claim is for simplified expenses?

 

[tbon]

for self employed its not £6 per week tax claim - its based on hours worked for the simplified expenses claim or business % use of utilities bills for the room(s) used.

Yes, that's clear, but is it relevant? All claims are based on simplifed expenses, not % of utility bills.

 

[UK Contractor Accountant]

Yes, that's clear, but is it relevant?

yes it is - if only work 20 to 50 hrs per month as self employed from home the simplified expense claim is only £10 per month not £6 per week.

multiple claims can be made from separate employers at £6 per week - this is where the employer actually pays the tax free WFHA. This is distinct from the employee making a claim from HMRC where you can only only make one claim at £6 per week.

 

[DontAsk]

That makes sense when the claim is for actual usage, but what about when the claim is for simplified expenses?

Didn't read that bit properly

Ask your accountant?

 

[tbon]

multiple claims can be made from separate employers at £6 per week - this is where the employer actually pays the tax free WFHA. This is distinct from the employee making a claim from HMRC where you can only only make one claim at £6 per week.

Do you mean, that only £312 per year is non taxable income, and anything received above that will be taxed with income tax?

 

[UK Contractor Accountant]

Additional household expenses​

If you cover the cost of additional household expenses for an employee who works from home, you do not have to report or pay tax if both of the following apply:

• they are working at home as agreed with you and they regularly work from home under those arrangements
• the amount you give them is not more than their additional household expenses or the amount you give them is not more than the current weekly limit

Weekly tax limits​

Tax years	Weekly limit
2020 to 2021 onwards	£6.00 (or £26 a month for employees paid monthly)
2012 to 2013 — 2019 to 2020	£4.00 (or £18 a month for employees paid monthly)