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E4.709 Application of the general rule—homeworking

For a detailed analysis of the changes announced at Spring Budget 2020 in respect of homeworking and how these interact with the Government's response to coronavirus, see A8.210. One of the main temporary measures was that, up to 5 April 2022, employees could be reimbursed relevant homeworking expenses on a tax free basis. This relaxed the general rule, which is reapplied after this temporary period, that if relevant homeworking items are provided rather than reimbursed, by the employer, they are more likely to qualify for exemption. This is because items provided by the employer may be exempt under ITEPA 2003, s 316 (see E4.757B0), which is less prescriptive than the rules for employee expenses claims under ITEPA 2003, s 336.

FA 2003 introduced provisions that ensure that there is no liability to income tax in respect of payments by an employer for a homeworker's additional household expenses that arise as a result of the employee's working from home (see E4.757B).

However, there are no statutory provisions that specifically deal with the