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Tax on Company computers

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    Tax on Company computers

    New tax for using company computers

    http://news.bbc.co.uk/1/hi/business/4832036.stm

    There is a real shock in this budget for businesses who loan computers to employee. From 6 April, new loans will attract a tax charge of up to £200 per employee, plus national insurance.

    #2
    Sounds "fair".


    Sorry.

    Comment


      #3
      Always read the smallprint

      http://www.timesonline.co.uk/article...099457,00.html

      The Chancellor announced plans to apply a triple tax to trusts set up to enable beneficiaries to avoid inheritance tax.
      ...assets put in to the trusts will be taxed at 20 per cent on the way in. The assets will also be taxed at 6 per cent every ten years. The final sting is an “exit charge” of up to 6 per cent when the beneficiaries take the assets out of the trusts.
      If you think my attitude stinks, you should smell my fingers.

      Comment


        #4
        "There is a real shock in this budget for businesses who loan computers to employee. From 6 April, new loans will attract a tax charge of up to £200 per employee, plus national insurance. "

        Does this mean that anybody with a company laptop could be taxed under a BIK? That could raise some serious cash and ruffle plenty of feathers.
        Rule Number 1 - Assuming that you have a valid contract in place always try to get your poo onto your timesheet, provided that the timesheet is valid for your current contract and covers the period of time that you are billing for.

        I preferred version 1!

        Comment


          #5
          I was just reading that too.

          What about those of us that run a company from home? Is all the company's equipment "loaned" to me because it's in my house?

          Presumably there's some vaguely definied test about it being for home use rather than work use.
          Will work inside IR35. Or for food.

          Comment


            #6
            Originally posted by DimPrawn
            Sounds "fair".


            Sorry.
            Lemme see: company gives you the benefit of personal use of a laptop, so you don't have to buy one with your own money net of tax. So that's a benefit in kind with a monetary value. Chancellor wants you to pay tax on that.

            Yes, that does sound fair. Is that what you don't like about it?

            Comment


              #7
              Originally posted by cswd
              Interesting point!

              My company has no equipment or assets at all. I own all the equipment and have a letter to myself stating that the company can use that equipment for business purposes or home purposes at any time either way from no cost. The staff aren't benefitting in cash at all. Neither is the business. It's a plain agreement. About the only thing I will be doing is claiming stationery on expenses (if I find somewhere where that is said to be acceptable).
              Well, yeah: the people who have a problem with this are people who want their company to give them a benefit in kind without it being taxable.

              Comment


                #8
                This sounds a bit like the debacle that surrounded all those sole traders changing their status to a limited company.

                Last year the DTI was actively promoting the computer loan scheme to employers BUT what one hand gives...the other hand now takes away.

                Mailman

                Comment


                  #9
                  Originally posted by expat
                  Lemme see: company gives you the benefit of personal use of a laptop, so you don't have to buy one with your own money net of tax. So that's a benefit in kind with a monetary value. Chancellor wants you to pay tax on that.

                  Yes, that does sound fair. Is that what you don't like about it?
                  I expect that if we went through your books Expat that apart from seeing porn we will also find your affairs all in order...all the tax that is due from you paid and not a whinge in hearing range.

                  After all...its only fair!

                  Mailman

                  Comment


                    #10
                    "company gives you the benefit of personal use of a laptop, so you don't have to buy one with your own money net of tax. So that's a benefit in kind with a monetary value. Chancellor wants you to pay tax on that.

                    Yes, that does sound fair. Is that what you don't like about it?"

                    No that doesn't sound fair. Many businesses supply laptops to their staff as it allows their staff to be mobile and/or work from home. Now Gordon is taxing them for this 'pleasure'. Most company laptops will be locked down, so the staff could not install all the cr@p which usually finds its way onto thier home computer i.e. they can't use the company machine in the way they would a personal one

                    Also, didn't this lot set up a scheme to encourage exactly this practice, whereby an employer could donate their staff kit for home use. Sounds like the 0% tax rate scam to me. Encourage people to do something, then when sufficient numbers do, tax them for doing what you encouraged them to do.

                    Finally, if this is a benefit in kind, would the charge be on a yearly basis? So £200 in 2006, 07,08,09,10 etc becuause your employer gave you a poxy laptop with office on it.
                    Rule Number 1 - Assuming that you have a valid contract in place always try to get your poo onto your timesheet, provided that the timesheet is valid for your current contract and covers the period of time that you are billing for.

                    I preferred version 1!

                    Comment

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