Top 10 tips: employee expenses during coronavirus homeworking

7 Apr 2020

If your employees are working from home due to the coronavirus lockdown, there are important tax compliance issues to consider before reimbursing expenses, explains Jacqui Gudgion CTA, corporate and business tax partner at Mercer & Hole

1. Supply of one mobile phone and sim card per employee

The supply of one mobile phone per employee is non-taxable. There is no need for any restriction of private use for the provision to be non-taxable and this ensures your employees can stay in touch.

2. Provision of new broadband connection

If your employee already pays for broadband, then no additional expenses can be claimed.

However, if due to the current situation a broadband internet connection is needed to work from home and one was not already available, then the broadband fee can be reimbursed to the employee and is non-taxable.

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