COVID-19: What expenses are taxable for employees working from home?

If your employees are working from home due to coronavirus, some equipment, services or supplies are taxable.

You could be affected if your employees' workplace has closed or they are following advice to self-isolate. However this does not apply to furloughed workers who are eligible for the Coronavirus Job Retention Scheme.

HMRC provides guidance on the following types of equipment, service or supply:

  • Mobile phones and SIM cards (no restriction on private use)
  • Broadband
  • Laptops, tablets, computers and office supplies
  • Reimbursing expenses for office equipment your employee has bought
  • Additional expenses including electricity, heating or broadband
  • Employer provided loans
  • Temporary accommodation
  • Employees using their own vehicle for business

More information on the above and how to report to HMRC can be found here.

 

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