Increase in Expenses Payments for Home Workers
Suffolk based Beatons Chartered accountants are advising employers of the recent increase in tax and NIC exempt payments that can be made to employees that work from home. The increase took effect on 6 April 2008.
The payment is to cover reasonable household expenses that are incurred when an employee works from home. HMRC believe that £3 per week should be sufficient to cover the costs of heating and lighting a home working area in most cases. The previous amount paid was £2 per week.
These amounts, however, are not a maximum sum. The £3 per week can be paid to employees without having to be justified. Employers can increase the amount and pay more if records are kept to show how the sums are being computed. For the money to be eligible for tax and NIC exemption, employers must prove that the costs incurred are reasonable additional household expenses.
For more information please contact John Oakley on 01394 279692 / 01394 287051
Ipswich
1-3 Elm Street, Ipswich, IP1 1EY
T: 01473 287051
Felixstowe
York House, 2-4 York Road, Felixstowe, IP11 7QG
T: 01394 279692
