What expenses are taxable for employees working from home?

If your employees are working from home due to hybrid working policies, some equipment, services or supplies are taxable and some are exempt.

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

Certain expenses are exempt from tax. HMRC has issued guidance on this.

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

Factsheets

Other useful information that can be found on our website includes or factsheets:

• Fixed Rate Expenses
• Employee Expenses

If you would like to discuss the tax implications of your employee expenses, please contact a member of our Payroll Team.