COVID tax concessions ending on 5 April
The government introduced several easements in response to the coronavirus pandemic. These were temporary measures that are set to end on 5 April. What do employers need to know?
Working from home. As many employees were required to work from home during the pandemic, employers were able to reimburse expenses for coronavirus-related home office expenses, such as monitors and keyboards, free from tax and NI. This measure is no longer available from 6 April 2022, so employers should ensure that such expense claims are submitted and processed before the end of the tax year.
Cycle-to-work scheme. Again, as many employees were required to work from home it would have been difficult for those using a cycle-to-work scheme to meet the conditions for the benefit to be exempt from income tax. Therefore, those who joined an employer-provided cycle scheme and received a bike or cycling safety equipment on or before 20 December 2020 were not required to use the equipment mainly for qualifying journeys (i.e. to and from their workplace) and maintained the income tax exemption. From 6 April, employees who use the scheme will need to use the equipment mainly for commuting to work again, or the income tax exemption won’t apply.
Related Topics
-
Scammers already targeting pensioners over winter fuel payments
Phishing attacks are already being sent to pensioners purporting to be from the Department for Work and Pensions (DWP). What’s going on and how can you avoid becoming a victim?
-
Changes to NDAs from 1 October 2025
From 1 October 2025 non-disclosure agreements (NDAs) will become unenforceable if they prevent victims of crime from making certain disclosures. What does the new law say?
-
When will you have to register your new business for MTD?
The timetable for mandatory use of Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) by existing businesses is well established. But when must you use MTD ITSA if you start a new business or create a new income stream?