Payroll Legislation

Returning Office Equipment: Is There a Taxable Benefit Charge?

Legislation

Returning Office Equipment: Is There a Taxable Benefit Charge?

Due Date

Ongoing

Summary

You may have supplied your home-working employees with office equipment. Here’s what to do when the equipment is returned.

Employer provided equipment

If you’ve supplied your employees with office equipment to allow them to work from home, without a transfer of ownership, there’s no tax charge when they return the equipment back to you.

If you transfer the ownership of the equipment to the employee at any stage of their employment, a benefit charge generally arises on the market value of the equipment at the time of the transfer less any amount made good by the employee.

Employer reimbursed equipment

If your employee has agreed to purchase their own home office equipment for use whilst working at home as a result of coronavirus and you reimburse the exact expense, unless you have specified to your employee they must transfer ownership to you, the ownership of the equipment rests with your employee.

There is no benefit charge on the reimbursement. There is also no benefit charge if you allow your employee to keep the equipment as it is something that they already own.

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