Expenses and benefits: homeworking

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 do not 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 do not have to report or pay anything if all the following apply:

  • they need to work from home, either because equipment they need is not 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 is not more than their additional household expenses
  • the amount you give them is not more than the current weekly limit

Weekly tax limits

Tax years Weekly limit
2020 to 2021 onwards £6.00 (or £26 a month for employees paid monthly)
2012 to 2013 — 2019 to 2020 £4.00 (or £18 a month for employees paid monthly)