Exemption for COVID-19-related reimbursed home office expenses announced

Released 14 May 2020

The Financial Secretary to the Treasury Jesse Norman, has announced details of a temporary tax exemption and National Insurance disregard to ensure that home office equipment purchase by employees as a result of the coronavirus outbreak, will not attract tax and NICs liabilities where reimbursed by the employer.

This measure will apply for 2019–20 from 16 March 2020 only, and 2020–21.

To be eligible for the exemption the expenditure must meet the following two conditions:

The equipment is obtained for the sole purpose of enabling the employee to work from home as a result of the coronavirus outbreak; and

The provision of the equipment would have been exempt from income tax if it had been provided directly to the employee by or on behalf of the employer (under ITEPA 2003, s. 316).

Further details can be found at https://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2020-05-13/HCWS237/.

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