Expenses and benefits: homeworking
2. What's exempt
What you report to HMRC depends on the situation.
Salary sacrifice arrangements
You have to report homeworking expenses if they are part of a salary sacrifice arrangement.
Equipment, services and supplies
If you provide equipment, services and supplies to an employee who works from home, you don’t have to report or pay anything if they’re only used for business purposes, or any private use is insignificant.
Additional household expenses
If you cover the cost of additional household expenses for an employee who works from home, you don’t have to report or pay anything if all the following apply:
- they need to work from home, either because equipment they need isn’t available at your workplace, or their work means they have to live too far away from your workplace to travel there every day
- the amount you give them isn’t more than their additional household expenses
- the amount you give them isn’t more than the current weekly limit
Weekly tax limits
The following table shows the weekly limit for tax years up to 2016 to 2017.
|Tax years||Weekly limit|
|2012 to 2013 — 2016 to 2017||£4.00 (or £18 a month for employees paid monthly)|
|2008 to 2009 — 2011 to 2012||£3.00|
|2007 to 2008 and earlier||£2.00|