Introduction

The developments in information technology and communications have seen an increasing popularity in employees working from home. There are a number of tax consequences associated with home working which are outlined below.

In 2022, the Office of Tax Simplification (OTS) undertook a review into hybrid and distance working. This constituted a policy paper in July 2022 and accompanying call for evidence in August 2022. The scope of this work was wide ranging, including:

1. •

   implications of cross border working

2. •

   permanent workplace rules

3. •

   accommodation travel and expenses

The subsequent Hybrid and distance working report: exploring the tax implications of changing working practices was published by the OTS in December 2022. It recognised that home and hybrid working arrangements are here to stay. Whilst many employers favoured extending the tax relief system to allow for travel between home and work, the potential costs of such a move were also acknowledged. More realistic may be the support for further potential HMRC easements and de minimis exemptions in cross border situations, both from the employee tax and social security standpoint