As many of you already know, councils can reimburse their employees for ‘reasonable additional costs’ incurred through working at home. These include such things as heating, lighting, and telephone calls.

This is a tax exempt payment of up to £6 per week/£26 per month which can be made providing that:

·       The employee needs to work from home

·       The amount paid is not more than their additional household expenses

·       The amount paid is not more than the current weekly limit

If you are employed by multiple councils, your employers can each pay up to £26 per month tax free provided that each council is satisfied that the total amount paid does not exceed the additional household expenses involved.

Where the council does not pay a homeworking allowance, employees can obtain tax relief from HMRC which allows them to avoid paying tax on £26 per month.