Section 137 — Finance Act 2003: Exemption where homeworker’s additional expenses met by employer

Exemption where homeworker’s additional expenses met by employer 137 1 In Part 4 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (employment income: exemptions), after section 316 insert— Homeworker’s additional household expenses 316A 1 This section applies where an employer makes a payment to an employee in respect of reasonable additional household expenses which the employee incurs in carrying out duties of the employment at home under homeworking arrangements.

2 No liability to income tax arises in respect of the payment.

3 In this section, in relation to an employee— “ homeworking arrangements ” means arrangements between the employee and the employer under which the employee regularly performs some or all of the duties of the employment at home; and “ household expenses ” means expenses connected with the day to day running of the employee’s home. .

2 This section applies to payments which the employer makes on or after 6th April 2003 in respect of expenses which the employee incurs on or after that date.