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With the current outbreak of COVID-19, most people have been expected to work from home wherever possible. Many workers who would normally commute into offices around the country have invested in home office equipment, such as desks, chairs and computers, to make their working spaces as comfortable as possible.

The tax breaks would be a temporary new rule, which would last to the end of next year.

It would mean employees would not be left worse off when they claim back the cost of home working equipment from their employers.

Employees will not have to pay income tax and National Insurance on any new home office equipment.

The Financial Secretary to the Treasury, Jesse Norman, announced that HM Revenue and Customs would not collect any tax or National Insurance contributions due on any reimbursed payments made from March 16.

For expenditure to be eligible for the tax relief, the equipment must have been obtained for the only purpose of enabling the employee to work from home due to COVID-19.

Jeremy Coker of the Association of Tax Technicians said: “Reimbursing the cost of newly-bought office equipment would under existing rules be taxable and result in a tax bill for the employee. This is clearly unwelcome, and the announcement of a temporary exemption from income tax and National Insurance for such reimbursements is fair and very welcome.”

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Another benefit of working from home is that employees are saving money on their commute and on buying their food out.

Kay Ingram, chartered financial planner at advisers, LEBC Group, said to Your Money: “One benefit of working from home is that other spending on travel, lunches and impulse buys, drinks after work, will all reduce, so for those still working and being paid, now is a good time to build up your rainy day funds from the savings being made.”

There is a popular belief that after the pandemic subsides, working from home will be more common for people working in offices and there will be a cultural shift towards a flexible working approach.

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A report commissioned by O2 found that 45 percent of respondents predicted a permanent change in their employers’ approach to flexible working after the lockdown lifts.

Twitter has even said they would allow its staff to work from home ‘forever’.

Twitter said: “The past few months have proven we can make that work. So if our employees are in a role and situation that enables them to work from home and they want to continue to do so forever, we will make that happen.”

Google and Facebook have also said its staff could work from home for the rest of the year.

Other companies are trying to figure out how they can re-open their offices while also introducing social distancing measures.

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