You are here: Home - Household Bills -

Tax break for home office equipment

0
Written by: Emma Lunn
19/05/2020
Employees working from home during lockdown will be exempt from paying income tax and National Insurance on newly-purchased home office equipment.

The tax break is due to a temporary new rule, due to last to the end of the tax year, which aims to stop employees from being left worse off when claiming back the cost of homeworking equipment from their employees.

Jesse Norman, financial secretary to the Treasury, announced the new measure in a written statement to both Houses of Parliament.

He said that for expenditure to be eligible for the tax relief it must have been obtained for the sole purpose of enabling the employee to work from home as a result of the coronavirus outbreak.

It is also essential that 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.

Under the rule, HMRC will exercise its collection and management discretion and will not collect tax and NICs due on any reimbursed payments made from 16 March 2020 to the date these regulations take effect.

Norman said the measure was being announced outside the normal fiscal process in order to ensure that employers and employees are able effectively to manage their working from home arrangements as soon as possible.

People working from home may also be able to claim up to £6 a week to help cover the additional expense of working from home via a little-known income tax relief offered by the government: P87.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week