Pitiful increase in tax-free rates for homeworkers

Following massive increases in energy costs HMRC has increased their guideline rate for employers' tax and NIC free payments to homeworking employees.

From 6 April 2008, it has increased the tax and NIC free guideline rate employers can pay home working employees without keeping records from £2 to £3 per week.

Under S 316A ITEPA 2003, employers can reimburse their employees who work regularly from home for the additional household expenses they incur without incurring an extra tax or NICs charge.