Expenses and BIK liability for a homeworker
Discussion
Morning all.
My current situation is designated by my employment contract as a homeworker. Analysis of FY to date is 82% of working days at home, customers visits, exhibitions & travel etc vs. 18% in the office for meetings. Company pay my hotel bill, receipted subsistence and 45 ppm for use of my private car to <> from the office.
Company accountant is of the view that these payments are liable to BIK tax via my P11D, but he cannot provide any specific HMRC documentation to substantiate this, other than his opinion.
So I'm asking please if the resident accountants have a view on this and what's the general practice now, given that more and more people are working from home.
Thanks in advance.
My current situation is designated by my employment contract as a homeworker. Analysis of FY to date is 82% of working days at home, customers visits, exhibitions & travel etc vs. 18% in the office for meetings. Company pay my hotel bill, receipted subsistence and 45 ppm for use of my private car to <> from the office.
Company accountant is of the view that these payments are liable to BIK tax via my P11D, but he cannot provide any specific HMRC documentation to substantiate this, other than his opinion.
So I'm asking please if the resident accountants have a view on this and what's the general practice now, given that more and more people are working from home.
Thanks in advance.
Thanks for the quick reply Eric.
Here's some background, as I recognise context is all:
Here's some background, as I recognise context is all:
- I live in Milton Keynes and office is in Haywards Heath (250 mile round trip)
- Small company (18 people) in specialist marine engineering (manufacture, sales & service)
- I work in international marketing and sales, so consequently most of my time is spent "externally facing"
- Majority of my inter-company interaction can is easily done remotely (email, WebEx, Skype etc)
I'm not trying to dodge the question Eric, rather trying not to make a subjective statement.
There's no MUST in terms of my duties and deliverables can only be performed at home.
But there is MUST in the fact that I couldn't be employed otherwise, since a 6+ hour commute each day is not feasible.
There's no MUST in terms of my duties and deliverables can only be performed at home.
But there is MUST in the fact that I couldn't be employed otherwise, since a 6+ hour commute each day is not feasible.
The place of work written into the contract is not the deciding factor for the mileage to be a business expense or a benefit in kind.
If your attendance at the office is regular (e.g. 1 day a week) then it could be considered to be another regular place of work. You can have more than one.
If your attendance at the office is regular (e.g. 1 day a week) then it could be considered to be another regular place of work. You can have more than one.
Unusually the HMRC guide (490) https://www.gov.uk/government/uploads/system/uploa... is reasonably helpful. Chapter 3, especially 3.30, 3.36,3.37 & 3.38
There needs to be a requirement of the role that you work from home, and also that the main office is not deemed a permanent workplace.
HMRC will try and take the view that you choose where you live, and as your role is not a specific regional one that requires you to live where you are, or requires you to be at home for specific purpose, then travel to the office is normal commuting.
The example in 3.30 could be useful if you can show that you are not regularly attending the office, and when you do it is random, you dont have a desk, you receive instruction from many places etc.
There needs to be a requirement of the role that you work from home, and also that the main office is not deemed a permanent workplace.
HMRC will try and take the view that you choose where you live, and as your role is not a specific regional one that requires you to live where you are, or requires you to be at home for specific purpose, then travel to the office is normal commuting.
The example in 3.30 could be useful if you can show that you are not regularly attending the office, and when you do it is random, you dont have a desk, you receive instruction from many places etc.
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