If staff are working from home you can temporarily reimburse the cost of equipment they need to buy on a tax and NI-free basis.
The government is temporarily amending the rules to allow employers to reimburse their staff tax and NI-free for the cost of equipment they buy because they need to work at home. The exemption will apply for reimbursements made in 2020/21, i.e. from April 6, 2020, but HMRC will have the discretion to apply it to reimbursements made on or after 16 March 2020.
The expenditure must meet the following two conditions:
- the equipment is for the sole purpose of enabling the employee to work from home as a result of the coronavirus outbreak; and
- had the equipment been paid for and provided by the employer it would have been exempt from income tax.
You may be able to claim tax relief for some of the bills you have to pay because you must work at home on a regular basis.
You can only claim for things to do with your work, for example, business telephone calls or the extra cost of gas and electricity for your work area.
You cannot claim for things that you use for both private and business use, for example, rent or broadband access.
From 6 April 2020, your employer can pay you up to £6 a week (£26 a month) to cover your additional costs if you must work from home. For previous tax years, the rate is £4 a week (£18 a month).
You will not need to keep any records if you claim the above rates approved by HMRC.
If your employer does not reimburse you for those expenses incurred you therefore may be eligible to claim them back from HMRC.
You cannot claim tax relief if you choose to work from home and/or this is part of your regular contract of employment and your employer has not agreed to reimburse you as part of this arrangement.
There are some other expenses you may incur as a result of your job that too doesn’t get reimbursed so it is also worth seeing if you are eligible to claim relief for these.
Click here https://www.gov.uk/tax-relief-for-employees/working-at-home to see if you can claim.