Hi, We have a colleague who works from home 100% of the time. Due to the fact that they work from home they need broadband access. They use their mobile to make any work calls. Historically the colleague did not have broadband access and was only given access when his previous employers installed a dedicated line for business homeworking. Therefore at that point in time the colleague was not already paying for a broadband internet connection at home. There is a lot of conflicting documentation on the HMRC website as to whether broadband can or cannot be reimbursed. Under Section 316A ITEPA 2003 (see attached link) https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim01475, it states that "If an employee is entitled to receive tax free payments...they will not lose that entitlement if they change from one homeworking employment to another"
Based on this statement above is it therefore correct that as the colleague has moved from the prior employer to the current employer that he can continue to reimburse his broadband costs? Just to add that when the colleague moved from the previous employer to another employer before joining his current employer the status of the phone line was changed from business status to residential status in order to keep connectivity. He explained that the company at the time did not request that he changed this back to a business status. Therefore the contract is in his own name and address. However the phoneline is solely used for work purposes.
I would be grateful if you could provide some advice on what the correct treatment of this should be for both the employee and the employer in these circumstances.
Many thanks in advance
Based on this statement above is it therefore correct that as the colleague has moved from the prior employer to the current employer that he can continue to reimburse his broadband costs? Just to add that when the colleague moved from the previous employer to another employer before joining his current employer the status of the phone line was changed from business status to residential status in order to keep connectivity. He explained that the company at the time did not request that he changed this back to a business status. Therefore the contract is in his own name and address. However the phoneline is solely used for work purposes.
I would be grateful if you could provide some advice on what the correct treatment of this should be for both the employee and the employer in these circumstances.
Many thanks in advance