Government has urged employees to work from home where operational circumstances permit as a measure to curb the spread of the pandemic in the workplaces across South Africa. Many employers across the country have accommodated their workers, allowing them to work remotely.

 

Amid some uncertainty, SARS has confirmed that employees who worked from home on a full-time basis during the lockdown period, will be able to claim home office expenses. In general, employees who earn commission and independent contractors will be entitled to claim reimbursement for such. However, due to the economic circumstances of COVID-19, SARS will now also accommodate full-time employees who work from home.

 

This tax benefit will, however, be subject to certain requirements. Firstly, the employee must have done so for at least six months of the year. (This implies that an employee who started rendering services from home at the beginning of lockdown will have to continue doing so until end September.)

 

“If, for example, an employee works normal office hours for a single employer for the tax year from 1 March 2020 until 28 February 2021 will be met if the employee performs their duties from home for more than half the year” the spokesperson of SARS confirmed in an interview with Business Insider SA.

 

In furtherance to this, such a home office must be specifically equipped for work purposes. It must be regularly and exclusively used for such and must be a dedicated work area.  The kitchen table or sleeper couch will therefore not suffice.

 

Some of the working-at home expenses that can be claimed from SARS include the following:

  1. Part of the interest on your bond/part of the rental on your home;
  2. Municipal rates and taxes which includes water and electricity;
    (This will take into account the floor space of your home office in comparison to the total floor surface of the employee’s dwelling. If the office area comprises 15 percent of the total house, the reimbursement will be apportioned accordingly. This pro-rated principle provides that the claim can not be made for the entire account).
  3. Stationery and other sundries;
  4. Data and communication expenses;
    Where the employer has reimbursed an employee for data costs, the employee will not be obligated to pay tax on these allowances;
  5. Depreciation on office equipment.

 

The benefits of working from home can be enjoyed by employers and employees alike, it not only limits contact with other employees but also with the public, thereby limiting the spread of the virus. Such an arrangement, however, remains the prerogative of the employer subject to its operational requirements.