Payroll Legislation

What Tax Charges are There for Returning Office Equipment?

Legislation

What Tax Charges are There for Returning Office Equipment?

Due Date

March 2020

Summary

Taxable benefit charges are as follows:

• If you supplied an employee with office equipment so they could work from home, and you didn’t transfer ownership, there is no tax charge when they return the equipment to you.

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

• If your employee has agreed to purchase home office equipment for use whilst working at home as a result of COVID-19 and you reimburse the exact expense, unless you have specified to your employee that 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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