Covid-19 and expenses paid to employees

The coronavirus pandemic has led to a different way of working, different locations of working, additional expenses we may not have incurred before, and brought on hardship for which employers may assist with.

It is important to know the tax implications of these different forms of expenses.

One of the recent changes to the Government guidance has been to include that Coronavirus (COVID-19) tests bought by employers will not be treated as a benefit on the employee.

Other expenses such as Personal Protective Equipment (PPE) which are necessary for employees to carry out their work will also be non-taxable.

Working from home may also bring about questions regarding equipment provided by the employer, reimbursement of office expenses and costs such as heating and lighting, all of which may have different tax implications.

The government’s guidance details the above issues and includes many more such as employer loans provided, mileage and transport costs, salary sacrifice changes and free and subsidised meals.

Please follow the link below for specific guidance on all the above.

https://www.gov.uk/guidance/how-to-treat-certain-expenses-and-benefits-provided-to-employees-during-coronavirus-covid-19

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