£26/month to cover additional household expenses
Discussion
We're currently paying £26/month as permitted by HMRC for additional household expensed to those working from home but that seems like a very small amount for those working 100% from home, especially as they have a dedicated work space which in some cases, they only have as it's a requirement for them to be able to work for us.
HMRC say that you can pay reasonable expenses for the additional costs incurred such as heating or lighting but you should keep records of those additional costs. What records do they expect us to keep?
As an example, one employee lives in a 4 bed house, one of those rooms he uses as our office and store room. Even the office furniture is our furniture which he must return if he leaves us.
He's paying about £600/month for heating and council tax although in fairness, his council tax would be the same whether he worked for us or not, although he did buy a 4 bed rather than 3 bed to meet the requirement to work from home.
His heating and lighting wouldn't be much different but his heating in the entire house is on during the working day when it might not be if he wasn't working from home.
£26/month doesn't seem enough but I'm not sure how we calculate and qualify what we should be paying him.
He's worked like this for over 3 years so not sure if we make a change now, whether we should be paying for the time before the change.
HMRC say that you can pay reasonable expenses for the additional costs incurred such as heating or lighting but you should keep records of those additional costs. What records do they expect us to keep?
As an example, one employee lives in a 4 bed house, one of those rooms he uses as our office and store room. Even the office furniture is our furniture which he must return if he leaves us.
He's paying about £600/month for heating and council tax although in fairness, his council tax would be the same whether he worked for us or not, although he did buy a 4 bed rather than 3 bed to meet the requirement to work from home.
His heating and lighting wouldn't be much different but his heating in the entire house is on during the working day when it might not be if he wasn't working from home.
£26/month doesn't seem enough but I'm not sure how we calculate and qualify what we should be paying him.
He's worked like this for over 3 years so not sure if we make a change now, whether we should be paying for the time before the change.
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