Mortgages & Protections | Working From Home | Expenses

Some researches claim that around 60% of the adult population are now working from home.

But what has changed in terms of claiming expenses for working from home?

Our answer is almost nothing.

Which expenses can be reimbursed to employees without paying additional tax:

Mobile phones/SIM

One per employee is allowed. No restriction on private use.

Broadband

If your employees have been paying for their broadband, no additional expense can be claimed.

If they install new broadband because they now have to work from home, employers can reimburse this expense. BUT any private use must be limited.

Laptops, tablets, office supplies

In case these are mainly for business purposes with limited private use, the cost can be claimed. BUT office equipment (e.g. printers) are not included in the list, thus any cost reimbursed will be taxable.

Use of vehicles (cars, motorbikes, bikes) for business

You can pay a mileage allowance for up to 10,000 a year:

- cars – 45p/mile

- motorbikes - 24p/mile

- bikes – 20p/mile.

Detailed guidance on Mileage Allowance Guidance can be found here.

Additional expenses like electricity, heating or broadband

You can reimburse your employees for up to £6 a week without paying extra tax (£4 before 6 April 2020).

Remember, always keep records of these expenses and have a clear policy as what is considered extensive private use in your company.

For further details, please check HERE.

Any questions, please let us know.

The information provided in this article is not intended to constitute legal, accountancy or financial advice. You should take independent legal, accountancy or financial advice before relying on the information in this article or before decisions are made or before you embark on any course of action.

Irina Inayat

Penn Accounts

0207 183 6623