As modern working practices change in line with technological advances and the needs of business, there are now around 1.5 million employees who work remotely from home. Homeworking is often seen as an attractive option for employers and employees alike, with employers benefiting from reduced operating costs while employees gain from the ability to work flexibly around family commitments while reducing their commuting time.

But while employers see their costs decrease, homeworkers can find their household bills on the rise. How should any employer reimbursement of those bills be treated for taxation purposes?