Following recent increases in energy costs, HMRC has increased their guideline rate for employers' tax and NI free payments to homeworking employees.

Employers can reimburse their employees who work regularly from home for the additional household expenses they incur without incurring an extra tax or NI charge. The extra expenses that the employer may reimburse are those connected with the day to day running of the employee’s home.

As it can be difficult for employers to calculate the exact additional costs, HMRC published a guideline rate that can be paid without the employer having to justify the amount paid or the employee having to keep any records to demonstrate the additional expenditure.

From 6 April 2008, it has increased the tax and NIC free guideline rate employers can pay home working employees (without keeping records) from £2 to £3 per week, although if it can be proven that the additional cost of working from home is more than this (and sufficient records are kept), additional payments can be made with HMRC agreement.

For more information, please contact janice@a4gsolutions.co.uk who will be happy to advise you further.

The Sex Discrimination Act 1975 has been amended in a number of respects, including a provision that employers can be liable for harassment where female employees are harassed in the course of their employment by a third party (for example, customers or suppliers) where the employer fails to take reasonable steps to prevent such harassment.

Importantly, employers will be liable if they know that harassment has occurred on at least two previous occasions, but such occasions do not have to involve the same third party.

Clarification has also been provided regarding what can amount to discrimination during maternity leave. If you would like a more detailed analysis of what these changes could mean for you or an update on discrimination law in general, please contact anna@a4gsolutions.co.uk.

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