Reimbursing employee working from home costs

Inland Revenue has confirmed that where employers are reimbursing employees for costs associated with the employee working from home for the period 17 March 2020 - 17 March 2021, this will be a non-taxable “reimbursing allowance” (meaning it’s not taxable income to the employee but still a deductible expense for the business). 

This applies only where an employer chooses to reimburse the employee for expenditure and the allowance is reflective of actual costs being incurred by the employee and up to the following levels: