ways2work > How to do it > Re-thinking commuting > Reducing commuting through ICT > Essential steps to creating teleworking > Legal and tax issues
Legal and tax issues
There are a number of legal and tax issues to be observed when implementing teleworking. These are briefly listed here together with links to authoritative advice.
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Right to request flexible working
Currently (October 2010) employees with certain caring responsibilities have the right to request flexible working (which includes working from home)
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A way for an employee to assess whether they have a statutory right to request flexible working is presented on the Directgov site
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Advice on the detailed eligibility of such requests and process for employers to handle them is given on the Business Link pages "Flexible working – The law and best practice"
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Contract of employment
If an employee's formal workplace changes from an office to home, that needs to be recorded in a change to or new contract of employment. That needs to follow set procedures which are described on the BusinessLink page "Change an employee's terms of employment". Examples of policy documents and working agreements can be found below
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Health and Safety legislation
The employer retains their workplace responsibilities towards the employee even though they are working at home. This is true even if the employee works at home only part-time.
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Other employer responsibilities
Further employer responsibilities for teleworkers concern working with VDUs and the risks of solitary / lone work . Employer liability insurance should also be checked to cover working at home and employer equipment at home needs to be insured by the employer.
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Tax
The tax and National Insurance implications of an employer providing equipment, services and supplies to an employee who works from home are described here. The same page also details the tax-free reimbursement of expenses that can be made to homeworkers.
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Tax, council tax and insurance implications for teleworkers
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The tax liability of claiming expenses for working from home is stated here
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Teleworkers need to be aware of the business rates and capital gains tax implications of working from home. To avoid complications it is generally advised that no room should be used exclusively for telework
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The household insurer should be informed about teleworking. Many companies offer special 'home office' policies
A non-definitive checklist of legal compliance issues is provided in the Transport for London Smarter Working Guide. A helpful set of FAQs called "Legal matters detail" is on the actnow flex site.