As part of the April 2022 Employer Bulletin, HMRC have confirmed detail around the ending of certain ‘easements’ related to special measures during COVID-19.
Easement ends for employee home-office expenses
Existing rules prior to the coronavirus (COVID-19) pandemic provided Income Tax and National Insurance contributions exemptions, where employers provide employees with equipment to allow them to work from home. This rule remains in place.
Prior to the pandemic, where an employee purchased the equipment and was then reimbursed by their employer, the exemption did not apply. Due to coronavirus, an easement was put in place under regulations to allow relief in situations where employers reimbursed employees buying their own office equipment to enable them to work from home during the pandemic.
This easement ended on 5th April 2022. This is because as UK government restrictions are lifted, working from home is no longer a legal requirement.
Tax on UK income for non-UK residents
In 2020 HMRC introduced guidance stating non-UK resident employees stuck in the UK because of coronavirus travel restrictions would not be taxed on earnings for duties performed in the UK after their planned departure date, provided they were taxed in their home state.
This easement ended on 5th April 2022. If you have non-UK resident employees, any days they spend working in the UK from 6th April 2022 onwards will be treated as days on which they performed duties in the UK.
For more information:
Cycle to Work coronavirus policy easement ending
Due to the impact of the coronavirus pandemic, in December 2020, the UK government announced a time limited easement. The easement was for employees who, on or before 20th December 2020:
- joined an employer-provided cycling scheme
- received a cycle or cyclist’s safety equipment
Employees who joined a scheme from 21st December 2020 would need to meet all the normal conditions of the Cycle to Work scheme.
Where eligible, employees would not have to meet the ’qualifying journeys’ condition until after 5th April 2022.
The rules of the scheme have not changed. As of 5th April 2022, all employees on an existing cycling scheme need to meet the normal conditions, including the ’qualifying journeys’ condition.