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.
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