Benepass’ Post

HYBRID WORKING – WHAT COUNTS AS A BUSINESS JOURNEY FOR TAX PURPOSES? HM Revenue and Customs (HMRC) have updated their guidance on what qualifies as ordinary commuting and private travel for tax purposes to include hybrid or flexible working. Generally, where an employee works at home as an objective requirement of the job (i.e. the facilities they need aren’t available in the office), then HMRC will usually accept that the employee is entitled to tax relief for the expenses of travelling from their home to another workplace, such as the office, when this is in performance of the duties of their job. Since COVID and with the developments in communication technology, many employers now allow their employees the choice of working from home on a flexible or hybrid basis. The employee will usually have a base office that they attend on the days they are working in the office. Since this flexible way of working is voluntary for the employee, they are not required to work from home. This means that any journeys they make from home to the office are ordinary commuting and do not qualify for tax relief. This is important to be aware of as an employer if you reimburse staff using the approved mileage rates. You must make sure that you do not reimburse expense claims for home to office travel for employees who are hybrid workers by their own choice. If you do, the payment then becomes a benefit and will need to have tax and national insurance deducted via payroll. If you are not sure about whether you or an employee qualifies for tax relief on home to office journeys, please feel free to call us at any time. We will be happy to help you! https://buff.ly/30whgCJ #HMRC #BusinessTravel #tax #SupportingSmallBusinesses #SmallBusinessAccountants #accountants #CloudAccountants #AdamFernandes

📣 Did you know the difference between pre-tax and post-tax benefits can have a significant impact on employees? Check out this article to learn more about how these benefits work and how they affect paychecks.💰💼 https://hubs.li/Q01ZpWKt0 #FinanceTips #PreTaxVsPostTax #MoneyMatters #FinancialWellness

HYBRID WORKING – WHAT COUNTS AS A BUSINESS JOURNEY FOR TAX PURPOSES? HM Revenue and Customs (HMRC) have updated their guidance on what qualifies as ordinary commuting and private travel for tax purposes to include hybrid or flexible working. Generally, where an employee works at home as an objective requirement of the job (i.e. the facilities they need aren’t available in the office), then HMRC will usually accept that the employee is entitled to tax relief for the expenses of travelling from their home to another workplace, such as the office, when this is in performance of the duties of their job. Since COVID and with the developments in communication technology, many employers now allow their employees the choice of working from home on a flexible or hybrid basis. The employee will usually have a base office that they attend on the days they are working in the office. Since this flexible way of working is voluntary for the employee, they are not required to work from home. This means that any journeys they make from home to the office are ordinary commuting and do not qualify for tax relief. This is important to be aware of as an employer if you reimburse staff using the approved mileage rates. You must make sure that you do not reimburse expense claims for home to office travel for employees who are hybrid workers by their own choice. If you do, the payment then becomes a benefit and will need to have tax and national insurance deducted via payroll. If you are not sure about whether you or an employee qualifies for tax relief on home to office journeys, please feel free to call us at any time. We will be happy to help you! https://buff.ly/30whgCJ #HMRC #BusinessTravel #tax #SupportingSmallBusinesses #SmallBusinessAccountants #accountants #CloudAccountants #AdamFernandes

HMRC have updated their guidance on what qualifies as ordinary commuting and private travel for tax purposes to include hybrid or flexible working. Generally, where an employee works at home as an objective requirement of the job, then HMRC will usually accept that the employee is entitled to tax relief for the expenses of travelling from their home to another workplace, such as the office, when this is in performance of the duties of their job. Usually, HMRC will only accept that working at home is an objective requirement of the job if facilities that an employee needs to do their job are only practically available at their home. On the other hand, if an employer provides appropriate facilities in other locations that could be practically used by the employee, or the employee chooses to work from home, then HMRC will not accept that working from home is an objective requirement of the job. For example - an area sales manager living in Glasgow needs to manage the company’s regional sales team across Scotland, their nearest office is in Newcastle. Since the manager cannot practically attend that office and is required by her employer to keep all client information securely at home, she is entitled to tax relief for her costs on the occasions she travels to the company’s office in Newcastle. Many employers now allow their employees the choice of working from home on a flexible or hybrid basis. The employee will usually have a base office that they attend on the days they are working in the office. Since this flexible way of working is voluntary for the employee, they are not required to work from home. This means that any journeys they make from home to the office are ordinary commuting and do not qualify for tax relief. This is important to be aware of as an employer if you reimburse staff using the approved mileage rates. You must make sure that you do not reimburse expense claims for home to office travel for employees who are hybrid workers by their own choice. If you do, the payment then becomes a benefit and will need to have tax and national insurance deducted via payroll. #hybridworking #workfromhome #commute #expenses

🚨 Friendly reminder to Paylocity clients, accountants, or connections who are business owners in Chicago. 🚊 The state of Illinois passed a law this summer known as the Transportation Benefits Program Act, which will require some employers in the Chicago metro area to offer pre-tax transportation benefits to their employees. 💲 Employers subject to the law must give employees the ability to purchase transit passes through pre-tax payroll deductions to travel to/from work. Employees will avoid federal income taxes, state income taxes, Medicare taxes, and Social Security taxes if they purchase a transit pass with pre-tax dollars. #PCTY #humancapitalmanagement #hrcompliance #hris #forwardtogether #employeebenefits #chicago

Useful to note as the base contractual location and reason for the base location such as home may not automatically give tax relief or ability to claim tax free expenses!

Taxes: Remote and hybrid workers could face double taxation on state taxes- Ronda Lee If your employer is outside the state where you worked remotely in 2023, you could face double taxation. Being a hybrid worker might also mean you get snagged. With the onset of the pandemic, many employees worked remotely for the first time. After the pandemic, hybrid work schedules became more prominent, triggering tax implications. Last year, 12.7% of full-time employees worked remotely, and 28.2% had a hybrid work schedule. State income tax rates range from as low as 2.5% in Arizona to a high of 13.3% in California. But even if you live in a state with no income tax, you could get hit with a bill if you commute to a state that does. Here are other scenarios you might face as a remote or hybrid worker and what you can do. #finances #remote #newyorkiptv https://lnkd.in/g97gFBVB

Make tax season a breeze with smart employee benefits 📊💼. From HSAs to 401(k)s and beyond, discover how your workplace perks can lead to tax savings. #TaxSeason #EmployeeBenefits #FinancialWellness

Did you know you may be eligible for home-office tax deductions as a corporate owner and employee? Under specific conditions, you can qualify for a home-office deduction if you use the office in your home for the convenience of your employer corporation, comply with tax code rules, and receive reimbursement for your home-office expenses. To ensure your home office qualifies as a principal office, follow these guidelines: 👉 Use the home office exclusively and regularly for corporate business. 👉 Perform most administrative or management tasks in the home office. 👉 Use the home office for the corporation's convenience, not personal convenience. If your corporation doesn't maintain an office outside your home, it's clear that your home office is for the convenience of the corporation. But even if you have a downtown office, your home-office use must still be for the corporation's convenience. Remember, the corporation should provide a written letter mandating your administrative or management tasks at home for the corporation's convenience. Keep this letter in your corporate tax file. Let's not forget - The benefits of qualifying your home office as a principal office are numerous: 👉 Tax-free reimbursement for employee business expenses. 👉 Deductible reimbursement as a business expense for office space. 👉 Elimination of personal-use commuting mileage, increasing business use and vehicle deductions. 👉 Corporate business deductions from the business percentage of your personal home expenses. As always, consult with a tax professional to ensure you meet all requirements and maximize your home-office tax deductions. #TaxPlanning #ConsultAnExpert #MaximizeSavings #HomeOfficeDeductions #TaxSavings #CorporateOwners #TaxTips #TaxDeductions #BusinessExpenses #Reimbursement #RentalRestrictions #TaxDeductionRules