Temporary Relaxation of Rules for Home Office Expenses

Under existing rules it is possible for an employer to provide equipment to an employee to allow them to work from home.  An important requirement of this exemption is that the employer must incur the expense.  Under new rules, to deal with the COVID-19 situation, this exemption has been extended to allow employers to reimburse an expense incurred by an employee without that employee being subject to Income Tax and National Insurance.  The new exemption will run from 16 March 2020 until 5 April 2021.  If you would like more information on what is covered by this exemption and the wider tax implications of working from home during the COVID-19 outbreak please contact us.