ACCA Advanced Taxation (ATX) Practice Exam

What is the amount of exempt employment benefit for home worker expenses?

1. Up to £3 per week

2. Up to £6 per week

3. Up to £10 per week

4. No amount is exempt

The correct answer is: Up to £6 per week

The correct answer regarding the amount of exempt employment benefit for home worker expenses is £6 per week. This figure is established by tax regulations that recognize the costs incurred by employees who work from home. The tax authority allows employers to provide a specific tax-exempt allowance to employees working from home to cover additional expenses related to utilities, internet, and other household costs incurred while working remotely. Homeworking allowances aim to ensure that employees are not financially disadvantaged due to the necessity of working from home. The £6 per week limit is intended to simplify the process for employers and employees alike, avoiding the requirement for complex calculations on actual expenses. Options stating amounts lower than £6 do not align with current guidelines, while the choice indicating no exempt amount overlooks the established allowance, which supports those who have increased living costs as a result of working from home.