Coronavirus Non Taxable Benefits When Working From Home

Published / Last Updated on 30/03/2020

What can I claim during the coronavirus crisis when working from home? What are Non Taxable Benefits When Working From Home?

Mobile phones and SIM cards with or without any restriction on private use = non-taxable benefit in kind.

Broadband – if you already have broadband at home then no expense can be claimed.  If your employer provides a separate broadband line exclusively for business (or very limited private use) use then = non-taxable benefit in kind.

PC, Laptop, Hardware – if used for business purposes or a requirement needed to perform role, again with very limited private use = non-taxable benefit in kind.

If you bought your own office equipment and ask your employer to reimburse = taxable benefit in kind – you could claim for a desk but not a sofa (the desk then becomes the property of the employer).

Utilities, water, electricity, heating or ‘home’ broadband used for business when at home = employer can pay up to £4 a week (£6 a week from 6 April 2020) non-taxable benefit in kind but if the weekly claim is above this amount, then the employee will need to check with employer that the additional costs are legitimate and will or will not cover these payments.  You need to keep receipts to prove your additional costs i.e. costs before working from home and costs when now working from home to prove a legitimate expense.

Temporary accommodation if you need to self isolate away from family, hotel costs and food costs can be paid by your employer but they are taxable benefits.  If you need hotel accommodation and subsistence because you ARE working away from home as part of the normal business practice, then these can be paid for/claimed as an expenses although subsistence should be no more than £15 per day – you cannot start ordering champagne and caviar on business expenses.

Own vehicle for business – the usual allowance of 45p per mile up to 10,000 miles free of tax and but if extra then 25p per mile thereafter but employer will have to pay National Insurance contributions.

HMRC Guidance Notes:  https://www.gov.uk/guidance/check-which-expenses-are-taxable-if-your-employee-works-from-home-due-to-coronavirus-covid-19


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