When you work from home there is a £6 per week tax free allowance that can be claimed.  This allowance is to cover the extra costs as you will be using more electricity, water, gas, etc.  Employers can pay this allowance to their employees free of tax and national insurance.  Payments over this amount will need to be supported with evidence.

If the employee needs to buy equipment to allow them to work from home and they will be claiming the costs back from their employer then there may also be some tax and National Insurance contribution free support.

This expenditure must meet the following conditions:

  • The equipment must be obtained for the sole purpose of enabling the employee to work from home during the Coronavirus pandemic
  • The provision of the equipment would have been exempt from income tax if it had been provided directly by the employer

These exemptions are a temporary measure and will have effect from the day after the regulations came into force until the end of the current tax year.

For more information please contact the KJG Tax Team who will be happy to assist.