So in my old job, I was able to claim £6 a week or £26 a month WFH allowance directly with our employer so we’d get the money directly into our bank accounts separately to our wages.
New job doesn’t offer it so I’ll claim with HMRC directly and here is what I am confused. How come £6 a week allowance only equates to £1.20 tax relief? I understand £1.20 is 20% of £6 but doesn’t it mean we’d only get £64 to cover extra cost for WFH for a whole year? Last year I got £26 extra each month, so £312 for the year, which really helps. Am I not understanding how tax is calculated?
Sorry if I am asking the same question again...
So in my old job, I was able to claim £6 a week or £26 a month WFH allowance directly with our employer so we’d get the money directly into our bank accounts separately to our wages.
New job doesn’t offer it so I’ll claim with HMRC directly and here is what I am confused. How come £6 a week allowance only equates to £1.20 tax relief? I understand £1.20 is 20% of £6 but doesn’t it mean we’d only get £64 to cover extra cost for WFH for a whole year? Last year I got £26 extra each month, so £312 for the year, which really helps. Am I not understanding how tax is calculated?