Home working equipment
In May 2020, it was announced that a temporary tax and national insurance exemption would cover home office equipment purchased by employees and reimbursed by employers as a result of the pandemic. This was backdated to the start of lockdown on 16 March 2020, and will cover the period until the end of the 21/22 tax year.
To be eligible for this temporary exemption, you should be able to tick off the following conditions:
- The home equipment provided was for the sole purpose of enabling homeworking as a result of COVID-19
- It would be tax exempt if provided directly by the employer
- Any private use of the reimbursed requirement is not significant
If you provided equipment to your employees to enable them to work from home during the pandemic, for example monitors and keyboard, etc., the following conditions must be met for the exemption to apply:
- Equipment was provided to enable the employee to perform the duties of their employment
- Any private use is insignificant
The equipment is however the property of the employer and should be returned to you. If you decide at a later date to give the equipment to the employee (perhaps because it isn’t needed in the office, for example), there’s a taxable benefit which you’d need to report in your P11D, even though the actual second hand value may be nominal.