There are some tax changes coming up in a few days that you need to be aware of.

The following temporary tax measures – introduced because of the Covid-19 pandemic – will end on 5 April 2022…

Homeworking expenses

During the pandemic, many employees had to work from home because of Government restrictions.

So, to help businesses and their staff, HMRC introduced a temporary exemption from income tax and National Insurance contributions (NICs) for home-office expenses. This applied to equipment you needed as an employee to be able to work from home because of the outbreak, such as a laptop or a desk.

The easement meant you could be fully reimbursed for the equipment, without being liable for income tax or Class 1 NICs.

The exemption was originally due to end on 5 April 2021 but was extended for another year. It will now end on 5 April 2022.

Tax on UK income if you live abroad

In 2020, HMRC introduced guidance for non-UK resident employees stuck in the UK because of Covid-19 travel restrictions. It meant you wouldn’t be taxed on your earnings for duties performed in the UK after your planned departure date, provided you were taxed in your home state.

This measure will end on 5 April 2022. So, if you’re a non-UK resident, any days you spend working in the UK from 6 April onwards will be treated as days on which you worked in the UK.

Cycle to work

Due to the pandemic, HMRC relaxed its “qualifying journeys” rule for cycles supplied under the Cycle to Work scheme on or before 20 December 2020.

The decision relaxed the rule that you should use the cycling equipment provided mainly for journeys to or from work or in the course of work.

But the Government’s coronavirus restrictions meant employees had to work from home where possible. And that meant many existing users of the scheme weren’t travelling to work and may have been unable to meet the condition.

The temporary measure will finish on 5 April 2022. So, if you’re an employee on an existing cycling scheme, you’ll need to meet the normal conditions – including the rule for “qualifying journeys”.

Need tax advice?

Our experienced team are here to help you manage your tax payments. We specialise in plain-English tax advice for people and businesses in the West Midlands and across the UK.

Call us on 07813 434195 or email: stephanie.churchill@churchilltaxation.co.uk
Steph Churchill

Stephanie Churchill

Managing director & co-owner of Churchill Taxation