In Mr Opoku-Anokye v HMRC [2025] TC09416, the First Tier Tribunal (FTT) found that the working-from-home allowance available during the COVID-19 pandemic was not allowed as no evidence supported the claim.
HMRC initially opened a Compliance Check into Mr Opoku-Anokye’s (OA) tax affairs due to the High-Income Benefit Charge (HIBC). OA earned above the £50,000 threshold for the HIBC and since his wife claimed child benefit, a Self Assessment return should have been submitted declaring the benefit received.
- Discovery Assessments were then raised covering six years, however, HMRC withdrew four of these as OA had a reasonable excuse for not submitting the returns.
- OA was an employee for both the 2018-19 and 2019-20 tax years to which the remaining two assessments related.
- In the two years in question, he earned above £50,000 and had not submitted tax returns.
- OA believed the Reasonable Excuse accepted for the earlier years should also be accepted for the remaining two years.
OA also believed he had entitlement to various reliefs and expenses for the two-year period which would reduce the outstanding tax liabilities.
These were:
- The purchase of an office chair and a computer monitor, neither of which were reimbursed by his employer.
- The cost of a course at which he presented a paper. OA believed the course was to maintain his professional standing at the time.
- Home working relief of £6 per week for the period in which he was required to work at home due to the pandemic.
- Gift aid relief for donations he had made to charity in the relevant tax years.
Additionally, he did not believe his PAYE figures were correct but did not accept the responsibility of proving otherwise since HMRC could verify these figures themselves.
The FTT found:
- A discovery of a loss of tax had been identified under s.29 Taxes Management Act 1970 and it was within the time limits. Therefore the discovery assessments were valid.
- ‘Reasonable excuse’ is not a defence against a valid discovery assessment.
- The burden of proof was on OA. HMRC had raised the assessments based on information they held and since OA was disputing the figures, he was responsible for proving the assessments were wrong.
- Receipts were provided for the office equipment and therefore allowed as these were wholly, exclusively and necessarily for his employment.
- The course was also required for the purpose of his employment.
- OA had not provided any proof regarding his periods of working from home. Despite HMRC introducing a dispensation meaning employees working from home were not required to provide evidence to support this claim, this was not brought in until 2020-21. OA, therefore, was not entitled to claim a working-from-home allowance without evidence.
- No evidence was given to support the gift aid claims.
- No evidence was provided to suggest the PAYE figures were incorrect.
The assessments were upheld with deductions for the office equipment and business course.
Useful guides on this topic
Discovery assessments
When can HMRC issue an assessment outside of the normal statutory time limits? What conditions must be met? Can HMRC issue two alternative assessments for the same period? What are your rights of appeal and defences?
Working from home: Homeworking rates and allowances
What tax-free allowances are there for working from home? What allowances can be paid to homeworking employees?
Working from home: Employees
What expenses can employees claim for homeworking? Are the rules the same for the self-employed? How do you make a claim?
COVID-19: Employees working from home
Working from home: a guide for employees working from home due to Coronavirus.
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