Contents
Into The Unknown
Season Of Goodwill
Farewell Andre
Toon Done Doon
Day Of Reckoning
Artistic Licence
Gizmos Again
A Free Lunch
Sweet As Nectar
Security Concerns
Going For A Spin
The Cap Does Not Fit
While It's Hot?
Code Cracking
Bad Connection
Broken Trusts
You Can't Take It With You
Dividend Returns
IR35 RIP?
Spam Spam Spam
Breaking Up
Duty Calls
Time Shift
Moving Vans
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In the 2006 Budget, Gordon Brown took away two exemptions which had been around for several years - one for the provision of computer equipment for an employee's private use, and one for an unlimited number of mobile phones lent to employees. The rule now is that the loan of computer equipment potentially gives rise to a tax charge on a benefit in kind, and only one mobile phone can be given tax-free to any employee. The Revenue have tried to clarify what the computer rule means in practice. They have said that no tax charge will arise even if there is some private use, if the sole purpose of the employer in providing the computer equipment was to enable the employee to work at home and the private use is not significant in relation to the amount of business use. So a little private internet surfing won't trigger a charge as long as that wasn't why the employer bought the computer. The question is how sceptical the Revenue will be when you tell them why you bought your employee a computer, and when the employee tells them how much it is used for different purposes. Given the amount of tax that would be due on most home computers, let's hope the Revenue take a practical approach. It's less likely that they will accept either purpose or use if the employee is also the employer - if you run your own company and decide that it will buy a computer for your use. Computers provided before 6 April 2006 remain tax exempt, but those bought after that date might give rise to a tax charge. It's all new, so we'll have to wait and see what the Revenue do. If you want to discuss the treatment of something you are thinking of buying, we will be happy to help.  |