Employment Benefits

This week, we return to Employment Benefits as a number of benefits/benefits-in-kind that come with certain rules that may reduce the tax liability upon receipt. In this case, we're looking at:

• Internet
• Phone
• Computers
• Work-related supplies

Let's review the specifics in relation to these four benefit types:

 

Internet 

An employer may provide an employee with a dedicated high speed internet connection specifically for business use, this is not a taxable benefit if private use is minimal.   

Phones

An employer may provide an employee with a dedicated home telephone line or mobile phone specifically for business use, this is not a taxable benefit if private use is minimal.  

It is important to note that; 

• If an employer pays for an employee’s home telephone bill or mobile phone bill this is a taxable benefit-in-kind. 
• The value of the benefit is 50% of the bill including line rental
• If the employee proves that less than 50% of the phone use is private, the value of the benefit is reduced proportionally 
• Records of how the calculation was made if less than 50% of the bill must be kept 

 

Computers

An employer may provide an employee with equipment to enable them to work from home, this is not a taxable benefit if private use is minimal.   

Equipment allowed for business purposes includes; 

• Computers, including laptops and hand head computers
• Facsimile machine
• Printer
• Scanner
• Modem
• Discs, disc drives and other computer-peripheral devise

 

Work-related supplies

An employer may provide remote working employees with certain furniture, equipment and facilities to enable them to work from home, this is not a taxable benefit if private use is minimal.   

It is important to note that; 

• This arrangement does not apply to employees who bring homework outside normal working hours. 
• Any equipment provided specifically for private use is a taxable benefit