You are here: Home - Household Bills -

Tax break for home office equipment

Written by: Emma Lunn
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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Hackers access details of nine million Easyjet customers

The personal details of nine million Easyjet customers have been accessed by hackers in a “highly sophisticated” attack.