Working on laptop

COVID-19: Tax Breaks for Home Office Equipment

Since the beginning of the Coronavirus lockdown across the world, the number of home workers has soared. Where possible, UK workers are still expected to work from home, and are likely to for some time to come.

As a result, many employees who would normally be office based, are investing in equipment for home use, such as computing equipment, desk, chairs etc.

Under normal rules, items like these would be subject to tax and national insurance deductions.

In a written statement to both Houses of Parliament, the Financial Secretary to the Treasury announced this week, that temporarily changes would be made to this rule, meaning that HMRC will not collect any tax or national insurance contributions on any reimbursed payments for home office costs.

Temporary Tax Breaks

This temporary measure is to ensure that employees are not left out of pocket when claiming back the costs of home office equipment from their employers. It is effective for equipment purchased after 16th March until the end of the current 2020-21 tax year.

The equipment purchased must be obtained for the sole purposed of enabling home working for employees, due to the Coronavirus pandemic, and to be eligible for the tax relief it must be equipment, that if supplied by the employer to the employee directly, would have normally been exempt from income tax.

Further details will follow from the government, regarding this rule change, later this month.