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Paying tax for "perks"?

(17 Posts)
Mermaidspam Fri 26-Apr-13 11:20:07

Dh has recently had a promotion to a management position. He works in IT development for a medium sized company. Because of this he gets various devices to test out, check suitability for the company, basically use for a while for whatever he wants. He currently has an ipad, a laptop and a kindle fire (has had these for 6 months - 1 year, before getting the new position).

He has just got an ipad mini but has been told that he needs to pay tax (not much - about £40 a year) on this as it is considered a "perk".

Also, he has just text to say the other items need to be handed back in because, otherwise he will have to pay the same amount of tax for each of these (so £160ish in total).

I know absolutely nothing about tax, so just wondered if someone could tell me if this was right?

Dh says "any second device which is mobile is now considered a perk. It's a tax dodge that the company are trying to palm off on us".

Essentially, AIBU to think that if testing an item is part of your job, you shouldn't have to pay anything for that item? I don't particularly care about the amount of £, it's the principal.

Justforlaughs Fri 26-Apr-13 11:45:24

I know that you have to pay for perks, but I don't think you should have to pay for something that is part of your job. That's ridiculous. I suppose the only way round it is to only test during working hours. If everyone did that then the company would probably change their policy as they would spend far more in the extra wages than they will save through the tax breaks they get.

PigletJohn Fri 26-Apr-13 11:53:04

I am struck by you saying "the other items need to be handed back"

Had you been thinking of them as presents to the family? If they were, then they would be taxable. If they were being used for business purposes or temporary testing (and then returned) they would not be.

It is also not unusual for other staff to say "Scroggins gets an ipad and a kindle and a coffeemaker all for free, why don't I ever get anything?" and if they are treated as gifts, this is a more awkward question.

As I see it.

Fillybuster Fri 26-Apr-13 11:56:05

as I understand it, if he has them for testing/business purposes then they are not taxable or a perk, and the company possibly has its knickers in a twist.

if he gets to keep them full time, then they are a possibly a perk, but only if he doesn't need them for his job.

jacks365 Fri 26-Apr-13 11:56:18

If he is testing the item during work hours and not taking home and getting any personal use out of it then he would not be liable for the tax but since he is and it is a perk then he is taxed. Same principal as company cars.

BackforGood Fri 26-Apr-13 11:57:48

What PigletJohn said.

LippiPongstocking Fri 26-Apr-13 11:58:24

If he's got them and uses them ONLY as part of his job, it's not taxable (ie he leaves them at the office when not in use) but if he's using them outside of his job as well as at work, then they're taxable as a perk. Like a company car.

Mermaidspam Fri 26-Apr-13 11:59:57

Piglet - no, they are at home and used by dh, me and dd.

jacks - So if you get any personal use of something then that is what makes it taxable? I think I get it now!

DIYapprentice Fri 26-Apr-13 12:00:34

Hmm, if he has to test them, then I would consider them to be part of his job. Can they not be re-valued at the end of the testing period - and then tax paid on that? They would then be secondhand with a far lower value.

Mermaidspam Fri 26-Apr-13 12:01:05

Lippi - x posts. Champion, I understand it now.

Thanks all.

niceguy2 Fri 26-Apr-13 12:02:05

The bottom line is this:

If the item in question is used 100% solely for business use and your DH can demonstrate this then there is no tax to pay. It simply isn't taxable.

The fact that you say that both you & your DD use it leads me to think that actually there is non-business use of said devices and so HMRC are perfectly entitled to say that there is 'benefit in kind' and so it is taxable.

Mermaidspam Fri 26-Apr-13 12:04:50

Niceguy - Yes, we all use them (when they are here and not with dh at his workplace).

PatPig Fri 26-Apr-13 12:06:32

If you are all using them, you should pay tax on them.

ShellyBoobs Fri 26-Apr-13 12:26:34

Dh says "any second device which is mobile is now considered a perk..."

That's because it's reasonable to say he needs a mobile phone or other device for contact when out of the office but it's not necessary to have 2 devices capable of the performing the same function.

Hence having 2 implies that there is a BIK rather than a business need.

Mermaidspam Fri 26-Apr-13 12:34:42

That's cool. Cheers, just didn't understand the rules.

Trill Fri 26-Apr-13 12:41:11

The company could probably do this better.

LippiPongstocking Fri 26-Apr-13 13:17:36

"The company could probably do this better."

It's nothing to do with the company and absolutely everything to do with HMRC.

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