Where an employee was furloughed when they were travelling to a
temporary workplace, the period of furlough forms part of that period of
continuous work. Working from home will also be part of the period of
continuous work. The workplace stops being temporary from the date that the
employee’s attendance there is expected to be more than 24 months and tax and
NICs will then become due on payments of travel and subsistence expenses. HMRC
has updated its main guidance How
to treat certain expenses and benefits provided to employees during coronavirus
(Covid-19) accordingly.
Home office equipment provided by the employer is not taxable
so long as there is no transfer of ownership. HMRC’s updated guidance Check
which expenses are taxable if your employee works from home due to coronavirus
(Covid-19) confirms that, where ownership is transferred to the
employee, the equipment will become a taxable benefit with the tax charge on
the market value of the equipment at the time of transfer (less any employee
contribution).
As widely reported, where an employee has bought home office
equipment for use while working at home, there is no benefit charge on the
reimbursement of the exact expense by the employer.
Where an employee was furloughed when they were travelling to a
temporary workplace, the period of furlough forms part of that period of
continuous work. Working from home will also be part of the period of
continuous work. The workplace stops being temporary from the date that the
employee’s attendance there is expected to be more than 24 months and tax and
NICs will then become due on payments of travel and subsistence expenses. HMRC
has updated its main guidance How
to treat certain expenses and benefits provided to employees during coronavirus
(Covid-19) accordingly.
Home office equipment provided by the employer is not taxable
so long as there is no transfer of ownership. HMRC’s updated guidance Check
which expenses are taxable if your employee works from home due to coronavirus
(Covid-19) confirms that, where ownership is transferred to the
employee, the equipment will become a taxable benefit with the tax charge on
the market value of the equipment at the time of transfer (less any employee
contribution).
As widely reported, where an employee has bought home office
equipment for use while working at home, there is no benefit charge on the
reimbursement of the exact expense by the employer.
