COVID19 WFH Allowance

Dear HM Revenue and Customs,

During COVID19 HMRC allowed a very generous interpretation of Workig From Home expenses allowances, such that employees were able to claim a full year's allowance even if they only worked at home for one day in that tax year. This is a highly unusual deviation from the "wholly necessarily and exclusively" principle set out on EIM31660 which is intended to prevent a deduction for expenditure that serves a dual purpose.

The purpose of such a deduction is also to reflect the actual cost of the expense of the activity to the individual.

The value of the allowance was also increased considerably over the previous allowance. Please provide details and documentation of:

1. The proposal and impact assessment of both the increase in value and the "1 day only" application.

2. Please show any documentation of Parliamentary approval of the increase to the allowance and the "1 day only" application of the rule.

3. Please show the calculations and the rationale used to justify how an employee working from home would incur additional costs of £6 per week, over and above the costs they would incur if they attended a permanent workplace.

4. Please detail the steps that are required to establish a fixed rate allowance for employee expensed such as at the £720 per annum allowance negotiated by Unite with HMRC for cabin crew.

5. Also please share all specific information and paperwork supporting the above allowance as was agreed between HMRC and Unite.

Yours faithfully,

Anthony Mills