The Office of Tax Simplification has published a report “exploring the tax implications of changing working practices”.
The report divides its key findings between domestic and international.
On the domestic front, the focus is on commuting and home-working costs. For example, the report asks: “Should costs of travelling between a home-based workplace and an office workplace be tax deductible?”
The report suggests that “the major change in working resulting from the pandemic may present an opportunity for government to re-evaluate longstanding rules and arrive at different approaches relevant to modern practices, without necessarily adding to exchequer costs”.
The report also highlights a request for HMRC guidance on hybrid working and the associate tax issues.
Commentary here is divided up to address the following issues:
- Taxable presence and permanent establishment
- Income Tax, payroll and social security
- Short-term visitors
- Collating and simplifying guidance