The Business Advisory Blog

The Business Advisory Blog

Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

Vanessa Williams
Published on

Clarification of employee allowances and reimbursements

An article on the Herald website last week (21 May 2020) suggested any employee working from home can ask their employer to approach Inland Revenue to organise a $15 per week tax refund.

payroll wages salaries-423We expect this might create calls from employees and employers asking if this is true.

It is not.

NZ IRD put out a Determination a month back which set out how, in certain circumstances, if an employer were to pay an additional allowance to an employee to cover the costs of working from home, that additional allowance may be exempt from tax.

The article is confusing in a number of ways, but this is the key error - the tax treatment only applies to an additional allowance an employer has chosen to pay an employee.

For more detail, see please visit the IRD's website or contact Alliott NZ in Auckland on 09 520 9200 if you have any questions.

Topics: employees IRD tax