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Exemption for Reimbursed Home Office Expenses

Whilst Government advice is still to work from home where you can, we are all having to adjust to new surroundings. In an attempt to make working from home as easy as possible, a new temporary tax and National Insurance exemption has been announced, to allow employers to reimburse employees for any home office expenses for equipment (office furniture and equipment such as desks, filing cabinets, fax machines) purchased by employees as a result of the coronavirus outbreak.

The exemption applies to reimbursed expenditure from 16th March 2020 and is expected to be available through the current tax year – ie to 5th April 2021.

There will be no tax charge on expenses that an employer incurs in providing directors or employees with the supplies, or where they reimburse the employee for the cost they have incurred provided they:
– are provided other than on the employer’s premises (e.g. employees who work at home or whilst travelling), and
– are provided for the sole purpose of enabling the employee to perform the duties of the employment and
– that the individual uses the equipment in performing the duties of the employment, and any use for the employee’s private purposes is not significant.

For more details contact Angela Keery, Tax Director at [email protected] or call 028 9032 3466