EIM32830 - Other expenses: home: household expenses: relation between deduction for employee鈥檚 expenses and exempt homeworking payments: examples
Sections 316A and 336 ITEPA 2003
Example 1
An employer introduces a homeworking policy under which employees who wish to work from home may do so. 皇冠体育app employer makes a payment of 拢6 per week towards the additional household expenses of those employees who decide to work from home. 皇冠体育app 拢6 per week is exempt from tax under section 316A ITEPA 2003 (see EIM01472 onwards). However, employees who can show that working from home costs them more than 拢6 per week are not able to obtain a deduction for the excess under section 336 because they are working at home by choice. 皇冠体育app conditions for relief under section 336 are more restrictive than the conditions for exempt payments under section 316A.
Example 2
皇冠体育app North of England representative of a company whose only offices are in London is entitled to a deduction under section 336 ITEPA 2003 for the expenses of working at home. He produces evidence that his additional household expenses, allowable under section 336, amount to 拢6 per week. However, his employer makes a contribution of 拢5 per week towards those expenses. That contribution is exempt from tax under section 316A. 皇冠体育app amount the employee is able to deduct under section 336 is therefore 拢1 per week, being the difference between his allowable, additional expenditure of 拢6 per week and his employer鈥檚 reimbursement of 拢5 per week.