Tax treatment of reimbursed expenses for home office equipment
To make it easier for your employees to remain productive while working at home without incurring a liability to income and NICs, the government has introduced a temporary new exemption so no income tax or NICs liabilities will be due on reimbursed expenses for the purchase of home office equipment.
HMRC will use its discretion to ensure the exemption applies from 16 March 2020 until 5 April 2021.
The exemption will apply to reimbursements of expenses to employees where you instruct or allow them to purchase their own home office equipment because they are working at home due to Coronavirus (COVID-19).
Information on this and other Coronavirus-related topics are covered in HMRC's June Employer Bulletin.
