Contractors who claim expenses for carrying out substantive duties from home on behalf of their companies, referred to as 'use of house as office', will be able to claim £4 per week as from 6th April 2012.
From 2012/13 onwards, payments of up to £4 per week will not need to be substantiated by records of the household expenses being covered. If amounts in excess of the weekly £4.00 rate are claimed then supporting evidence is required to demonstrate that the payment does no more than reimburse the additional household expenses incurred by the employee.
If the amount reimbursed exceeds the employee's additional expenses then it counts as earnings and the excess must be put through the payroll. Where there is no supporting evidence for reimbursements, then the amount that has to go through the payroll is any excess above £4.00 per week.
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