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.
Continued...
The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.
Registration is FREE and allows you to view all content, ask questions, comment and much more.
Or if you are already registered, login here

mean
..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.