29th May 2020
To support employees who are working from home and need to purchase home office equipment as a result of the COVID-19 outbreak, a temporary tax exemption and National Insurance disregard will come into effect to ensure that the expense will not attract tax and NICs liabilities where reimbursed by the employer. The expenditure must meet the following two conditions to be eligible for relief:
- That equipment is obtained for the sole purpose of enabling the employee to work from home as a result of the COVID-19 outbreak.
- The provision of the equipment would have been exempt from income tax if it had been provided directly to the employee by or on behalf of the employer.
The exemption is a temporary measure and will have effect from 16 March 2020 (the date the Government recommended working from home) until the end of the 2020/21 tax year.