Working from home has gone through three phases in terms of tax.
The pre-covid phase where tax deductions were difficult to secure as a result of a strict application of the wholly, exclusively and necessarily in the performance of duties rule.
Since the lockdown, HMRC significantly relaxed the rules on the ability of employers to pay working from home expenses including the provision of equipment. As the Government wanted everyone to work from home, this was not surprising.
The big challenge will come when the Government stops advising employees to work from home. Will the tax rules changes?
One should not ignore the human resource issues, the employment issues and the tax as employers get used to a new normal.
Jeremy Mindell offers a course which looks at both the HR and Tax issues that arise.