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Work from home allowance

Did you know that the government has announced several tax deductible allowances to make working from home easier for you and your employees?

In response to the Covid 19 pandemic requirement for non-essential workers to work from home, the IRD introduced a hassle-free reimbursement of working from home expenses for employees in early 2020. Employers could make a tax-free payment of up to $20 a week, per employee without having to gather expense evidence.

As the incidence of working from home has continued, the IRD has extended the tax exemption on the work from home allowance of up to $20 per week until March 2023.

Employees can receive up to $20 per week, tax-free, to cover the additional costs of working from home such as printing, internet usage and power. Any payments above this, require evidence of expenses. All payments are deductible to the employer.

A further tax-free allowance of up to $400 per employee for furniture and equipment costs without having to gather evidence of expenses is also available where employees have needed to purchase furniture or technology to enable working from home.

For tailored guidance relating to your specific circumstances, please do not hesitate to get in touch.

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