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We do things differently to traditional accountants and put a focus on genuine business advice – not just tax returns.
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![[Paying Staff Tax free] We bet that one got your attention.
The IRD have recently been looking at tax free allowance limits to employee's who are working from home.
They are looking to change the limits from 1 April 2023. Luke made a video about this and posted it on Tik Tok, as you can imagine overnight it amassed 155,000 views (with some very varying comments....if you use Tik Tok, you know).
This isn't anything new, it's just not that common and again, the rates may increase. The Citizens Advice Bureau even have information on this: Remember that paying back your employee for expenses related to working from home is not an employment right.
Whether you do this for your employees depends on what has been negotiated between you (as the employer) and your employee.
The main point to remember with this reimbursement is that if you reimburse an employee for costs associated with working from home, the payment will not become part of their taxable income (they do not pay tax on it), and you can claim a tax deduction for it.
For example, you could agree to reimburse an employee for some or all of the cost of:
- equipment (for example, a computer) or furniture they bought for the purpose of working from home; or
- their personal mobile phone or Internet plan, if they use it for work as well as for personal use. IRD guidance on this (which applies from 1 October 2021 until 31 March 2023), says you can use it to estimate your employee’s working from home costs: - Telecommunication devices and usage plan - up to $5 per week as reimbursement for use of their telecommunications plan and equipment, or an estimate based on the proportion of use/cost for work purposes compared to for personal purposes.
- General expenditure - Up to $15 per week as reimbursement of general costs, such as heating.](https://nextadvisory.nz/wp-content/plugins/instagram-feed/img/placeholder.png)
