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HMRC internal manual

Tax Credits Technical Manual

Income: employment income rules - Specific payments and benefits in kind excluded from employment income for tax credit purposes: Reasonable Additional Household Expenses When Working from Home

The Tax Credits (Definition and calculation of Income) regulations 2002, Reg.4(4) Table 1 (item 17)

The payment or reimbursement of reasonable additional household expenses, incurred by an employee who works from home, within the meaning of section 316A of ITEPA. (See EIM01472-EIM01478)


Note: With effect from 6 April 2017 the way in which many salary sacrifice and benefit in kind schemes are taxed will change, which means that some tax credit claimants will see an increase in their taxable income.

For the purposes of tax credits, where one of these schemes is in operation the taxable income figure should be used.