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.

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Comments

mean

oldersimon | | Permalink

..but £3 a week is what you can claim without bothering to keep any records or provide any evidence. If you can justify more than that, you can claim it.

Why Pitiful?

Anonymous | | Permalink

It is a 50% increase!

Well...

Anonymous | | Permalink

The cost of phone calls, then a cup of tea or two, and then if you tried to use a light or try the heating on a cold day...I can't see that you would have much change from a fiver.