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Inland Revenue has issued a statement, Determination EE002, setting out the payments it would approve as tax-deductible for an employer who pays an employee for the use of their home as a workplace.

This was done for businesses affected by Covid-19. The department has realised the working from home arrangements have become permanent for some people and has therefore dropped the requirement that working from home has to be because of Covid-19.

The determination now applies to anyone working from home.

IRD wants to have another look at this so it has extended the time limit to 17 March 2021. Hopefully it will come in with some permanent figures by that date.

You might find Determination EE002 a useful guide, but remember you don’t have to apply it and you can use whatever figures you like, as long as you can justify them being for the actual use for work purposes.