Work expenses claimed and UC

coconutcurls

First of all I started my new / better job and 1 day after the start date, I notified UC via the app and was ‘told off’ eletronically for notifying them after the start date. Sorry UC, I had a very intensive induction date without breaks between jobs, my head was spinning with all the info overload and I needed to relax and go back again following day…

Anyway…

My question:
My new employer encourage hybrid work - 3 days from home. They are closing offices and if people don’t work from home the place will get overcrowded. I have already received some equipment - next would be the green card to buy a table and a chair to set up a home office. I am supposed to pay for it myself and claim it back which will be paid with my wages, showing on my payslip. 

I asked UC and they said it will be treated as income and my benefit will be adjusted. 

I asked HR if they can pay me back any other way but waiting for their reply. 

Anyone has experience with this and can advise please?

Icequeen1

If your employer purchases it and sends it to you, as long as there is no significant personal use, then there is no taxable benefit. If you purchase it and get it reimbursed then it will be taxable income and so yes will count for UC purposes. 

See https://www.att.org.uk/home-sweet-home-–-tax-relief-home-working#:~:text=The employer is also not,see below for further commentary. 

coconutcurls

@Icequeen1 Thank you. Why the level of personal use is taken into account?
Will using it for work purposes 3x a week  be considered personal use?

Icequeen1

coconutcurls said:

@Icequeen1 Thank you. Why the level of personal use is taken into account?
Will using it for work purposes 3x a week  be considered personal use?

That is what the legislation says, personal use cannot be significant if the employer purchases it for you. It follows most of the rules around claiming expenses for tax purposes which are focused on it being used for work purposes. 

lisyloo

coconutcurls said:

@Icequeen1 Thank you. Why the level of personal use is taken into account?
Will using it for work purposes 3x a week  be considered personal use?

No using it for work is not personal use.
if you used it in the evening to watch YouTube then that’s personal use.
It’s a lot simpler if you keep it purely for business.

im not sure why your “expenses” count as income
normally purely business expenses are separate to income.

Icequeen1

lisyloo said:

coconutcurls said:

@Icequeen1 Thank you. Why the level of personal use is taken into account?
Will using it for work purposes 3x a week  be considered personal use?

No using it for work is not personal use.
if you used it in the evening to watch YouTube then that’s personal use.
It’s a lot simpler if you keep it purely for business.

im not sure why your “expenses” count as income
normally purely business expenses are separate to income.

Because for other work expenses, employers can reimburse with no tax consequences. For equipment like this, if the employer does that it is taxable on the employee - they can only do it tax free if they purchase the equipment for the employer according to the link above and the HMRC manual