April 2008

HOME WORKERS - TAX FREE PAYMENTS LIMIT INCREASED

HMRC has increased the very modest tax and NIC free guideline rate employers can pay home working employees without keeping records of household costs.

From 6 April 2008, the limit is increased from £2 to £3 per week.

This simplifies administration for both employers and employees where only the minimum amount is paid. Higher amounts can, of course, be paid if employees keep records of actual costs, calculate the allowable proportion and retain evidence.