Tax Free Earnings

Given benefits in kind you can be forgiven for thinking that nothing is exempt from taxation. The other factors states what ought to make you think you have lower tax treatment. Over and above that, consider the following:

  • Business expenses that HMRC are satisfied are soley for business purposes are not subject to tax.
  • Home workers can receive tax free income to cover the costs of working from home. These costs must be incurred in addition to normal household expenses – ie additional costs incurred by home working. For expenses under £3 per week (disappointing) no receipts / evidence is required. For higher expenses, evidence would be required by HMRC.
  • Charitable gifts by individuals or as Reg would say, “close companies” are not taxable.