Taxable Benefit Charge – Office equipments used while working from home

As many employees were forced to work from home during the pandemic, employers needed to find a way to supply them with all the necessary office equipment in order to enable them to do so. HMRC has made a temporary exemption for these benefits that will be in place until 5th April 2022.

In regards to benefit taxation and transfer of ownership, the June 2021 Employer bulletin has highlighted the following:

  • If the employer has supplied the employee with equipment without transfer of ownership, there will be no tax charge when the equipment is returned.
  • If the ownership was transferred to the employee, a benefit charge generally arises on the market value of the equipment.
  • If the employee has purchased the equipment and the employer reimburses the expense, unless specified that the employee must transfer ownership of this equipment, the ownership rests with the employee. There will also be no benefit charge in either case – whether the equipment is kept by the employee or the ownership is transferred to the employer.

For more information, visit the HMRC webpage.