Employment Tax

Introduction to provision of computers to employees

Produced by Tolley
  • 25 Feb 2022 15:50

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

  • Introduction to provision of computers to employees
  • Introduction
  • Business only use ― exemption for provision of computers to employees
  • Benefit of provision of computers to employees
  • Salary sacrifice / optional remuneration in relation to the provision of computers to employees
  • Reporting requirements for the provision of computers to employees
  • Reporting where the provision of the computer is exempt
  • Reporting where the provision of the computer is a benefit
  • Voluntary payrolling for computers provided as a benefit

Introduction to provision of computers to employees

Introduction

Many employees are provided with a computer or laptop in order to perform their duties as an employee. In the vast majority of circumstances, this will not give rise to a benefit and so there will be no reporting requirements.

This note covers the circumstances where the computer or laptop remains the property of the employer, and the employee uses it during their employment and is required to return it at the end of their employment. If the computer or laptop is owned by the employee, please refer to the Assets ― bought, sold or given guidance note.

Business only use ― exemption for provision of computers to employees

Where an employer provides an employee with a computer or laptop solely for business purposes, there is an exemption from tax and NIC and no reporting consequences if the following criteria are met:

  1. there is a business need for the employee to be provided with the computer or laptop and it is key to the performance of their duties

  2. the employer ensures there is not significant private use of the computer or laptop

  3. the computer or laptop is not provided as a reward to the employee

ITEPA 2003, s 316

HMRC sets out its interpretation of the term ‘not significant

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