Tax Relief for your Job Expenses

Posted on 20th May 2020 by Streets


Image to represent Tax Relief for your Job Expenses

Naturally with many working from home during Covid-19, this may be an area more employees want to understand to ensure they are claiming tax relief where possible, on expenditure they incur.

The areas covered within this section of the Government website include:

  • Uniforms, work clothing and tools
  • Vehicles you use for work
  • Travel and overnight expenses
  • Professional fees and subscriptions
  • Working at home
  • Buying other equipment

For more information and to check if you can claim, the link to the relevant section of the website is:

https://www.gov.uk/tax-relief-for-employees/working-at-home

New exemption for Covid-19 related reimbursed home office expenses

In addition, the Financial Secretary to the Treasury has announced that reimbursement of expenses that would be for home office equipment are exempt from tax.

This change will have effect for the 2019-20 (from 16 March 2020 only) and 2020-21 tax years.

The temporary income tax and National Insurance (NIC) exemption will ensure that no tax liability arises where employers reimburse employees’ personal expenditure on home office equipment arising from arrangements to work from home during the Covid-19 outbreak.

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

  1. That equipment is obtained for the sole purpose of enabling the employee to work from home as a result of the Coronavirus outbreak, and
  2. 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 section 316 of ITEPA).
    Linked to employee expenses and benefits, an earlier article (that we featured in our Covid-19 regular updates) may also be relevant to anyone trying to understand the treatment of expenses and you can read it here:

https://www.streetsweb.co.uk/about/news/2020/may/13/treatment-expenses-and-benefits-provided-employees/


No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


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