HM Insights

Coronavirus Update – Working From Home – allowances and reliefs update

HMRC have recently provided an update to working from home allowances and reliefs which we previously discussed in our earlier blog Coronavirus – Working From Home – Allowances and reliefs .

In the last few days it has been announced that a temporary tax and National Insurance exemption will be introduced to ensure that any employees who have had to purchase home office equipment as a result of the current pandemic will not be liable to tax or NICs when reimbursed by their employers.

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However, the following conditions must be met in order for the employee to be eligible for the relief:-

  • The equipment must have been purchased for the sole purpose of enabling the employee to work from home as a result of the current pandemic.
  • The provision of the equipment would have been exempt from income tax if it had been provided directly to the employee by or on behalf of the employer.

HMRC have confirmed that this is a temporary measure and will have effect from 16 March 2020 (being the date the government recommended working from home) until end of tax year 2020/21.

 

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If you require assistance in relation to anything mentioned in this article, please get in touch with a member of our team.

Useful links

CORONAVIRUS LEGAL ADVICE

PERSONAL TAXATION ADVICE