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Home office expenses exemption extended

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The Income Tax (Exemption for Coronavirus Related Home Office Expenses) (Amendment) Regulations, SI 2021/225, extend the temporary income tax exemption to home office equipment bought by employees and reimbursed by employers during 2021/22.

The existing exemption was introduced for 2020/21 by SI 2020/524 in response to the lockdown restrictions where employees were required to work from home where possible. The exemption avoids the income tax charge which otherwise would arise on the employee where the employee buys the equipment and is reimbursed by the employer.

The Social Security Contributions (Disregarded Payments) (Coronavirus) Regulations, SI 2021/242, make equivalent provision in relation to class 1 NICs.

Issue: 1523
Categories: News