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Where Taxpayers and Advisers Meet
HMRC Increases Rate for Reimbursing Employees' Household Expenses
26/02/2012, by Lee Sharpe, Tax News - Business Tax
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HM Revenue & Customs has announced that it will increase the tax-free amount that employers can pay to its employees for working from home - for "reimbursing sundry household expenses" from £3 per week to £4 per week from 6 April 2012.

Whilst higher amounts can be paid, this is the level which HMRC categorically states can be paid without any Income Tax or NIC cost, or any evidence/records required of the additional cost incurred by the employee. 

For the announcement itself, please see Reimbursing Additional Household Expenses.

For background information on these exempt payments, see EIM01472

About The Author

Lee is TaxationWeb's Articles & News Editor and writes for TaxationWeb. He is a Chartered Tax Adviser with experience of advising individuals and owner-managed businesses over a broad spectrum of tax matters.
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