Rules relaxed on home office expenditure

Written by yasiradnan94
19 May 2020

The government has introduced a temporary exemption in regards to the purchase of office equipment.

The Government has bowed to additional pressure to allow for extra costs incurred when working from home during the coronavirus pandemic. A temporary exemption is in place which means office equipment purchased by an employee which is reimbursed by their employer will not be subject to tax and NICs.

For this to be possible two conditions must be met;

1.Equipment must have been purchased with the sole purpose of enabling the employee to work from home as a result of the pandemic
2. The equipment would have been income tax exempt if it was provided directly to the employee by the company

The relaxation is to be in force till 5th April 2021 and is a very welcome measure as under normal rules this would result in a tax bill for the employee.

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