Tax-free homeworking allowance increased this year by 33% (yippee!)…

Lee Moss A.C.C.A., B.A. (Hons.)

… to £4 per week (oh, is that all!).

Since 6^th April employers have been able to pay directors and employees £4 per week without any PAYE on NI implications. Unfortunately the Taxman rarely accepts that there is justification for anything higher.

The solution, however, is to draw up an agreement to charge your company rent in return for using your home as a business. The rent should match the corresponding household expenses so that there is no profit element that can be taxed.

                                                                                                                                                                                               

Nabarro Poole does not accept any liability for actions that readers may take and recommends obtaining specific professional advice before action.

For more information, please contact us through our website: www.NabarroPoole.com

Posted by nabarropoole on Wednesday 3 October 2012

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