Many employees are working from home. An employer can make some tax-free payments to employees, although it isn’t compulsory, – and it’s not a lot.
Home working allowance
Someone working from home will incur extra costs, including heating etc. They can be paid an amount to cover these costs. HMRC will allow £4 per week for the 2019/20 tax year and £6 per week commencing 6 April.
For monthly paid employees, the comparable figures are £17.38 and £26.07.
A higher figure can be used if it can be justified but a calculation will be required.
If you want us to add this to payroll for staff working from home, please let us know.
Broadband set up costs for business
Most people already have broadband at home so there will not be a set up cost. However, we know of at least one client whose employee does not have broadband and is reimbursing the cost of installation to the employee.
Also, where someone is on a slow or limited connection at home, the cost of upgrading to a better connection would probably be justified and, therefore, allowable.
Mobile/Landline phone costs
If an employee is making business calls on their own phone, the employer can reimburse the employee for the cost of those calls. Where an employee has an unlimited calls plan, it may be difficult to justify putting call charges through.
Where an employee needs additional items to facilitate working from home, it will be ok to reimburse the employee. We have had employees asking for cables to connect laptops to televisions or for keyboards or a mouse. Strictly, these belong to the employer but, whether they are returned, will be difficult to establish.
Occasionally an employee may need to make a car journey on behalf of the employer, possibly to deliver or collect something from a customer, shop, Post Office or bank. Travel costs can be reimbursed at the statutory rate of 45p per mile.
There are other posts on our site with help and information about the current, Coronavirus, problems. If you haven’t done so, please read them.
We are here providing as full a service as possible. Most of our staff are working from home so it isn’t possible to just ring and speak to someone, however, they can ring back. Communication by email (email@example.com) or using the form below are best but, if the matter is urgent, call us on (01509) 816150 . We are answering the phone but someone can only answer one call at a time so, if you don’t get an answer, please try again.
Our staff can remote on to your computer to help out with issues. We use Ultraviewer for this. If you think that this will be helpful, installing Ultraviewer could reduce the time taken. Ultraviewer is Windows based and if you are using a non Windows computer or tablet, we can use Teamviewer.
Where appropriate, we can also set up audio or video conferencing using Zoom which will allow several people to join a meeting.
Our existing clients will always get preference but we will do our best to help anyone with a problem. Can’t guarantee to solve it, but might be able to provide some comfort. This may be particularly appropriate for anyone who is self-employed wishing to submit a tax return quickly – possibly because they may be due a CIS refund. We are already geared up to prepare and submit tax returns for the 2019/20 tax year. Our first is ready and will be submitted on 6 April.