Our website uses cookies to store information on your computer. You may delete and block all cookies from this site, but parts of the site will not work as a result. Find out more about how we use cookies.
(Do not show this message again)
Shout99 - News matters for freelancers
Search Shout99 - News matters for freelancers
(Advanced Search)
   Join Shout99  About Shout99   Sitemap   Contact Shout99 19th Sep 2020
Forgot your password?
Shout99 - Freelancers, FO35, Section 660
New Users Click Here
Shout99 - Freelancers, FO35, Section 660
Shout99 - Freelancers, FO35, Section 660
Front Page
News...
Freelancers' Shop...
Ask an Expert...
Letters
Direct Contracts
Press Links
Question Time
The Clubhouse
Conference Hall...
News from Partners
Accountants

Login
Sitemap

Business Links

Shout99 - Freelancers, FO35, Section 660

Freelancers' Shop

Personal Financial Services
from ContractorFinancials

Mortgages

Pensions

ISAs

Income protection

... and more special offers for Shout99 readers in the Freelancers' Shop

Shout99 - Freelancers, FO35, Section 660
  
Shout99 - Freelancers, FO35, Section 660

News for the
Construction Industry

Hardhatter.com - News for small businesses in the construction industry

Powered by
Powered by Novacaster
Advertisement
Cogent

Tax-free payment helps with the cost of working from home
by Susie Hughes at 11:54 14/04/20 (News on Business)
The Chartered Institute of Taxation (CIOT) is urging employers to consider supporting employees working from home because of the Coronavirus outbreak with a tax-free payment equivalent to over £300 per year to help with the costs of higher household bills.
CIOT confirmed that this advice is also applicable to contractors or freelancers who are employed by their own limited company. A CIOT spokesman said: "It also applies to directors who are employed by their own limited company. If you are an employee, including directors, and have an office at home your employer, in this case the limited company you own, can use the section 316A exemption to make tax free payments of homeworking expenses.”

The Institute noted existing HMRC guidelines that permit employers to pay their workers who regularly work from home under an agreed arrangement a tax-free payment to help cover costs associated with higher household bills, such as electricity and gas.

Advertisement
HMRC has confirmed that employers who require their employees to work from home as a result of the temporary closure of their business premises due to the Coronavirus would be able to provide the tax-free payment as a means of offsetting reasonable additional household expenses.

This payment increased to £6 per week – or £26 per month – from April 6 as a result of measures announced in the March Budget. It is usually paid to workers in addition to their salary.

It is up to an employer to decide whether to make the payment. If they don’t, employees may be able to claim tax relief from HMRC on the additional household costs of their home office, provided they keep records of these costs and can prove to HMRC that they were ‘wholly, exclusively and necessarily’ in the performance of their work.


--
If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'.
-
Susie Hughes © Shout99 2020

Printer Version

Mail this to a friend

Copyright 1999-2018, Shout99.com | All Rights Reserved
Privacy Notice and Terms of Use
 

Advertisements
advert
advert
advert
advert