Produced by Tolley
  • 22 Mar 2022 12:12

The following Employment Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Broadband
  • Introduction
  • Broadband and telephone services provided together
  • Exemptions and deductions for the provision of broadband
  • Exemption for accommodation, supplies and services provided to employees
  • How is ‘performance of the duties’ defined?
  • What is ‘significant private use’ for broadband?
  • Exemption for increased costs as a result of homeworking
  • Deduction under the general rule for expenses
  • Broadband as a benefit
  • More...

Broadband

Introduction

Employers may provide broadband access to employees, usually as part of homeworking arrangements, or for employees who are likely to be required to work from home out of hours. Alternatively, the employer may simply provide broadband as a benefit. The PAYE treatment of the provision of broadband depends on both why and how the provision is made.

The key considerations are:

  1. why has the broadband been provided?

  2. what is the broadband actually used for (business, personal or combined use)?

  3. who has the contract with the provider?

  4. who pays for the broadband ― does the employee simply receive the broadband with no involvement in the administration, is their bill paid for them, or are they reimbursed as an expense?

In order to determine the correct treatment, first you will consider whether there is an exemption from tax and NIC for the broadband. Where there is no exemption, there may be a deduction. If neither of these applies, then the benefit is taxable and NICable. The reporting requirements vary according to how the provision is arranged and paid for.

The key difficulty with broadband is where there is mixed personal and business use. The vast majority of broadband packages do not identify the different expenditure so it may be impossible to say what amount relates to private use and what relates to business use. If broadband is provided and there is significant private use then, unless the specific business elements can be identified, the full amount is taxable.

Broadband and telephone services provided together

Broadband and

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

There's no margin for error. Think Tax.
Think Tolley.

TolleyGuidance gives you direct access to critical, comprehensive and up-to-date tax information and expertise you can rely on.

TAKE A FREE TRIAL

Popular Articles

VAT fuel scale charges

VAT fuel scale chargesWhat are fuel scale charges?The VAT fuel scale charge is a simplified method that can be used by a business that funds both business and private mileage costs for employees to account for any output tax due on the private use of the vehicle. The charge was introduced to

06 Apr 2022 18:13 | Produced by Tolley Read more Read more

Indexation allowance and rebasing

This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to

22 Feb 2022 10:04 | Produced by Tolley in association with Jackie Barker of Wells Associates Read more Read more

Qualifying charitable donations

Companies can obtain corporation tax relief for qualifying payments or certain transfers of assets to charity under the qualifying charitable donations regime. Definition of qualifying charitable donationThe definition of ‘qualifying charitable donations’ includes:•qualifying cash donations to

16 May 2022 13:23 | Produced by Tolley Read more Read more