http://www.legislation.gov.uk/id/ukpga/2003/14

Part 7Income tax, corporation tax and capital gains tax: general

Employment income and related matters

137Exemption where homeworker’s additional expenses met by employer

(1)

In Part 4 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (employment income: exemptions), after section 316 insert—

“316AHomeworker’s additional household expenses
(1)
This section applies where an employer makes a payment to an employee in respect of reasonable additional household expenses which the employee incurs in carrying out duties of the employment at home under homeworking arrangements.
(2)
No liability to income tax arises in respect of the payment.
(3)
In this section, in relation to an employee—
“homeworking arrangements” means arrangements between the employee and the employer under which the employee regularly performs some or all of the duties of the employment at home; and
“household expenses” means expenses connected with the day to day running of the employee’s home.”.

(2)

This section applies to payments which the employer makes on or after 6th April 2003 in respect of expenses which the employee incurs on or after that date.