The Government have given some further guidance on expenses which are taxable that relate to Employees working from home.
They have clarified that those working from home due to business premises being closed or due to shielding requirements can be paid specific expenses by Employers who can then claim tax relief on these when Ltd Company Corporation Tax returns are filed to HMRC.
This means that items such as those shown below can be paid for by Employers who can then reduce their Corporation Tax liability by taking these values from profits before tax is calculated.
- Broadband for use at home by Employees
- Mobile Phones & Sim Cards (with no restriction on private use)
- Laptops, tablets, computers and office supplies
- Repayment of these expenses to an Employee who purchased these themselves
Remember evidence of payment of the above expenses to Employees needs to be kept for future reference if Corporation Tax returns are inspected by HMRC
If you are an Employee and have incurred any of the above expenses but have not been reimbursed by your Employer, you can claim tax relief for these. Please contact us for further details on how to apply.