Produced by Tolley in association with Philip Rutherford
  • 17 Nov 2021 12:07

The following Employment Tax guidance note Produced by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:

  • Homeworking
  • Introduction
  • Homeworking overseas
  • Equipment
  • Home telephone
  • Household expenses
  • Reporting requirements
  • Travel from home

Homeworking

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 (although for a discussion around homeworking and coronavirus (COVID-19) see the Homeworking and other expenses and coronavirus (COVID-19) guidance note).

There is no set definition of what constitutes a home worker or a single collective set of principles which guide what can and cannot be claimed as a tax deduction. Instead the employee is required to identify allowable expenditure in light of the rules regarding the expense which he has incurred.

From a practical perspective it may be useful to review the employee’s contract of employment with the HR department in order to determine whether the individual is actually required to homework or whether the employee is choosing to do something which may then preclude a tax deduction. It may be worth amending the contract of employment to clarify the position for both the employer and employee.

Homeworking overseas

With updates in technology and ease of international travel, and with a bigger focus on flexible working since many employees were asked to work from home in 2020 due to coronavirus, working patterns have changed, and are likely to continue to change for some time. For various reasons, employees are more likely to have been working from home while based abroad. Perhaps particularly recently, this is likely to occur where people went to be with family overseas during lockdowns. However, it is

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