Shropshire employees who take their work home with them may find
they do not qualify for tax savings.
Helen Thomas, Managing Director of Dyke Yaxley Chartered
Accountants, in Shrewsbury, said the internet had led to a huge
increase in the number of people working from home.
"Encouraging staff to work from home is an
environmentally-friendly and often cost-efficient way of running
your business.
"But the flexibility of the arrangement can lead to confusion
for both employers and their workers about the correct tax
procedures."
Helen said most people who chose to work from home just
occasionally, rather than regularly, would not be entitled to tax
deductions.
"But if an employee works from home more frequently and it
becomes their typical working routine, then both the company and
the worker should be clear about the tax implications."
The main consideration is that for any expenses in the home to
be tax deductible, they must have been incurred wholly, exclusively
and necessarily in relation to the person's job.
"Certain payments made by employers to cover the cost of home
working will be exempt from income tax and National Insurance
contributions, but there are strict limits," said Helen.
"Generally any payments over £3 per week will need to be
reasonable, and supported by evidence. They may also be scrutinised
by HM Revenue and Customs, and will still not apply to people who
work from home on the odd occasion."
If a company provides an employee with supplies or services in
their own home in order to carry out their job, they will not be
taxed on them.
"This is as long as HMRC do not consider that any use of the
supplies or services for private reasons is significant - this
would cover furniture and computer equipment, stationery, and all
other normal office or workshop materials.
"It can also cover home telephone lines and internet access, but
the rules on this are restricted, and employers should check them
carefully.
"Home working is an extremely useful tool in today's business
world, particularly for employees with complex family situations,
but it's important that both staff and employers know where they
stand."