Home Computing Initiatives

The Department of Trade and Industry (DTI) has published guidance to help employers set up home computing initiatives (HCIs). These schemes take advantage of the £;500 annual tax exemption on the provision of computers to employees. By using a salary sacrifice arrangement, employees accept a reduction in their gross annual salary in return for the use of a loaned computer. Many such schemes are cost neutral and employers may also see a reduction in their secondary NICs.

Guidance and several case studies are available on the DTI's special website for HCIs.
(Source: www.knowledgenetwork.gov.uk/oee/hci.nsf )
...back to 6 February 2004

Benefits for disabled employees

When an employer makes company assets available for employees to use privately, that is a taxable benefit that must be reported on form P11D if the beneficiary is a director or an employee earning at a rate of £;8,500 or more. However, the tax legislation specifically excludes from any liability the provision of equipment, services and facilities that are required by employees to do their jobs, where that is the sole reason for providing the benefits and any permitted private use is not significant.

This exception is particularly useful for disabled employees as their employers may provide more specialist equipment to help them do their jobs. However, a difficulty arises where disabled employees are given equipment that is essential for them to perform their duties but, by its nature, has considerable private use. Examples are hearing aids and wheelchairs. To avoid a tax charge on such items, the Government has introduced The Income Tax (Benefits in Kind) (Exemption for Employment Costs resulting from Disability) Regulations 2002.

The Regulations exempt a benefit from a tax charge where it

• is provided to a disabled employee
• is provided principally to enable the employee to perform the duties of the job
• is a hearing aid, or other equipment, services or facilities (but not a motor vehicle, boat, aircraft or work carried out on property)
• is provided under the provisions of the Disability Discrimination Act 1995, or the Access to Work programme, or any other statutory provision, whether or not the employee has an statutory obligation to provide it, and
• is also available to other disabled employees as appropriate.

Information about the Access to Work programme is available on the website of the Department for Work and Pensions, at www.jobcentreplus.gov.uk/cms.asp?...
Payroll Briefing 3 - 4 July 2002