UK Homeworkers Won't Get Tax Breaks

by Jason Gorringe, Tax-News.com

11 February 2003

Parents with young children who decide to request homeworking arrangements when new, more flexible working laws come into effect in the UK on April 16 are likely to find themselves out of pocket, according to Inland Revenue guidelines on the issue.

Although self-employed taxpayers who work from home are permitted to claim tax relief on work-related costs, the UK tax authority has warned that unless it is an 'objective requirement' that an employee work from home rather than a choice, teleworkers are unlikely to be able to claim tax relief on the extra expenses incurred as a result of working from home.

Speaking to the Times newspaper on Monday, Alan Denbigh of the Telework Association asked:

'Why offer this perk then make people pay for it? If the government is modernising working patterns it should also be modernising tax laws accordingly.'

However, a spokesman for the Inland Revenue yesterday attempted to justify the agency's position, explaining that:

'Each case will be treated individually but if people are simply choosing to work at home rather than it being a requirement of their job they will not receive any tax relief. The rules will stay as they are regardless of the new legislation.'

Recommended