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Will regular working from home override office-base

Lesley

| 0 Posts

6 Sep, 2021 10:00

Hi, I would appreciate a response to a small query. We are based in London and have an employee who has recently moved to Sheffield due to personal circumstances and requested to work from home and come into the office 2 days in every 3 weeks (unless called in for meetings) which we are happy to approve even though our policy states to come into the office once every 2 weeks - which has been agreed for a couple of other employees.

However before we confirm, I just wondered whether it will have implications on employer having to cover certain costs – like travel to the office (still considered as a commute, not business travel) or home office expenses.  I am aware of the government claim for tax relief for those working from home but are there any other implications for us as an employer?

We are a very small charity of 25 people so cost is a factor for us.

Thanks for your help.

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  • Alun

    | 0 Posts

    6 Sep, 2021 11:25

    There must be a point where an employee is home based and therefore the travel from home to work become a travel expense. I know there is some guidance from HMRC around travel expenses and locations etc but I haven't read it in years.
  • Keith

    | 0 Posts

    6 Sep, 2021 11:28

    Just be clear in your contract / offer letter what the arrangements are. So if you require them to travel to the office at their own expense once a week/fortnight/month or whatever say so.

  • Lesley

    | 0 Posts

    6 Sep, 2021 11:34

    Thanks for your speedy responses Keith and Alun. Yes Alun that is what we are wondering about, the travel expense scenario. Keith is it that simple? If so, I suppose we would be best placed to put it in our policy.
  • Keith

    | 0 Posts

    6 Sep, 2021 11:36

    In reply to Lesley:

    Yes pretty much that simple
  • Lesley

    | 0 Posts

    6 Sep, 2021 13:21

    In reply to Keith:

    ok thanks a lot Keith. Can anyone recommend a policy that is a good model I can use as reference? (we do have a flexi policy but sometimes it's good to see how others cover themselves against this).
  • Lesley

    | 0 Posts

    7 Sep, 2021 11:50

    Hi again, one more question has arisen. If home base is confirmed as place of work, will she be allowed to claim expenses when travelling to the office? In the same way as if someone was office based and had to go to another office location they would be permitted to. Or am I not comparing like with like? (Sorry, this specific point is confusing me).
  • Johanna

    | 0 Posts

    CIPD Staff

    7 Sep, 2021 17:29

    In reply to Lesley:

    Hi Lesley, you can always give our employment law helpline a call 24/7 for free as you are a CIPD member. They'll be able to advise on your particular circumstances to supplement all the great info shared here on the Community. www.cipd.co.uk/.../advice-support
  • Keith

    | 0 Posts

    7 Sep, 2021 18:00

    In reply to Lesley:

    As stated above you can contract with people how you wish.

    HMRC will look at the reality of the situation if you are trying to pay tax free expenses. So if someone always attends the office on a Monday then HMRC are likely to view it as a regular place of work anyway.

    Many people are offering home workers hybrid locations. One home and one office and not paying expenses between the two.
  • Lesley

    | 0 Posts

    8 Sep, 2021 12:11

    Hi and thanks to you both. Johanna, yes i did call CIPD helpline as I always do, and also I called ACAS but I get conflicting info. ACAS just says so long as we put clearly in writing that the employer will not pay the expenses of travelling to the office, we're ok. I think because this is all evolving, it's being treated differently in different offices. Keith, your suggestions sounds good but what about if an employee requests to come into the office for 2 days every 3 weeks due to distance from home? When does 'regular' office attendance cease to become 'regular'?
  • Keith

    | 0 Posts

    8 Sep, 2021 12:45

    In reply to Lesley:

    Just make them a Hybrid worker - with base both at home and the office. Then in side letter set out clearly how often you expect them at each.

    I think you are tying yourself up in knots unnecessarily.
  • Lesley

    | 0 Posts

    8 Sep, 2021 13:50

    In reply to Keith:

    aww, thanks so much. Yep, going round in circles but this sounds the best solution. Very much appreciate all your responses and support everyone! Don't know what I'd do without you (cue blushing emoji...lol!)
  • Liz

    | 0 Posts

    8 Sep, 2021 14:14

    In reply to Lesley:

    Hello there - there are some HMRC rules and this link should help you out Lesley.
    In my experience HMRC take a substance over form approach and will consider the reality of someone's working arrangements in determining whether they are office or home based.
    There is also a "24 month rule" that you need to watch out for (a secondary set of rules which prevent a workplace from being a temporary workplace).
    www.gov.uk/.../tax-and-national-insurance-contributions-for-employee-travel-490
  • Lesley

    | 0 Posts

    8 Sep, 2021 16:04

    In reply to Liz:

    Thanks Liz however I took a look and to be honest all the jargon has thrown me so I can't figure out what it's telling me.
  • David

    | 0 Posts

    9 Sep, 2021 09:41

    HMRC offer free webinars etc on this and other topics eg
    register.gotowebinar.com/.../1113645165940895246
  • Lesley

    | 0 Posts

    9 Sep, 2021 09:58

    In reply to David:

    That's interesting David, I wasn't aware that they provided webinars but I suppose it makes sense. Yes I'll take a look. Thanks a lot!