More and more of us are involved in flexible working these days – with many employees negotiating arrangements where they are based at home for at least part of their working week. That can have advantages for both the employee and the employer –cutting employee expenses in the office and potentially improving performance by motivating the employee.
However if you’re an employer going down this road you need to be aware of your tax, national insurance and reporting obligations to make sure your employee expenses are handled correctly.
How do I find out more about employee expenses and home phones?
There’s plenty of information about all your employer’s obligations on the Government’s own web pages. But if you haven’t got time to trawl through lengthy guides these are the main points to get you started.
If your employee earns less than £8,500 a year and they use a landline in their home for business calls only then you might be exempt from deducting and reporting NI and PAYE charges.
However if your employee expenses are not exempt you’ll need to take steps. You can find full details of what you have to report, deduct and pay here. Working out the value is straightforward and you can find tools to help you do this here.
Need more advice on employee expenses and how to handle home phone bills? Visit this link for technical guidance and specific scenarios to help you understand your responsibilities.