News
May 2010
Homeworking Costs
Where an employee regularly works from home under specific arrangements with the employer and thereby incurs additional costs, it is usually necessary for the employee to keep accurate records of these additional costs in order for these to be reimbursed by the employer on a tax and National Insurance free basis.
It is rarely possible to keep accurate specific records, for example as to how much the additional cost of access to the Internet, additional light, heat and water costs might be.
The Revenue has, therefore, allowed a concession whereby in these circumstances a payment of £3 per week can be made on a tax and National Insurance free basis, without the necessity of maintaining any record of the additional expense incurred.
This may not be a significant amount, but if a number of employees fall into this category then the National Insurance savings for the employer may well be worth the exercise and in the current economic climate where a pay increase may not be possible, an additional £156 per year may help go some way to ameliorate this.
