The Association of Taxation Technicians (ATT) has asked the government to clarify whether the proposed increase in the tax-free amount which an employer can pay employees who are working from home applies to temporary arrangements, such as those put in place in response to COVID-19.
At Spring Budget 2020, the government announced that it would increase the weekly tax-free homeworking allowance from £4 to £6 with effect from April 2020. According to ATT, the inclusion in the legislation of the word ‘regularly’ creates some uncertainty as to whether the exemption can apply where the arrangement is temporary. In the uncertain situation created by COVID-19, it may not be clear whether an employee’s homeworking will be frequent or follow any particular pattern.
The Association of Taxation Technicians (ATT) has asked the government to clarify whether the proposed increase in the tax-free amount which an employer can pay employees who are working from home applies to temporary arrangements, such as those put in place in response to COVID-19.
At Spring Budget 2020, the government announced that it would increase the weekly tax-free homeworking allowance from £4 to £6 with effect from April 2020. According to ATT, the inclusion in the legislation of the word ‘regularly’ creates some uncertainty as to whether the exemption can apply where the arrangement is temporary. In the uncertain situation created by COVID-19, it may not be clear whether an employee’s homeworking will be frequent or follow any particular pattern.
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