Tax Benefits For Employees That Are Work From Home

Where possible staff members are work from home during COVID 19 and businesses are providing them with necessary equipment and tools to do their work. There is a confusion as to if this equipment give rise to taxable benefit for employee.

An employee “fringe benefit” is a form of pay other than money for the performance of services by employees. Any fringe benefit provided to an employee is taxable income for that person unless the tax law specifically excludes it from taxation.

Where an employer, in consultation with their employee, judges an employee can carry out their normal duties from home they should do so. Public sector employees working in essential services, including education settings, should continue to go into work where necessary.

Anyone else who cannot work from home should go to their place of work. Following COVID-19 secure guidelines closely can substantially reduce the risk of transmission. Give extra consideration to people at higher risk.

Below is a summary of the key expenses:

Mobile phones and SIM cards

• One mobile phone and a SIM card does not bring a taxable benefit for an employee.

Broadband

• If the employee already pays for broadband, that is taxable benefit for employee.

Laptops, tablets, computers, and office supplies

• If these are mainly used for business purposes and not major private use, these are non-taxable benefit for employee.

You can look at the UK Government guidance by clicking here

If you have any questions; feel free to contact us or Telephone: 020 3883 4777

or Rana Zubair at Apex Accountants and Tax Advisors