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Where Taxpayers and Advisers Meet

Laptop for Employees

Robert B
Posts: 2
Joined: Thu Mar 16, 2017 12:28 pm

Laptop for Employees

Postby Robert B » Thu Mar 16, 2017 12:37 pm

Hi Guys,

We need to get laptops for several staff but don't want to pay the full cost as they are basically for personal use. Can anyone help with the best way to do this. Assume the laptop costs £2000.

Loan: If we provide a loan to staff to buy the laptop they will be under the £10k limit so no PAYE/NI. Are there any restrictions on the repayment period? Could we do 3 years? Assuming we only wanted to claim back £1200 am i correct in thinking that the staff member would be liable for the £800 benefit in Kind? @ 20 or 40% PAYE and 13.8% NI?

Sale:Alternatively, we could buy and sell the laptops too the staff. With the same discount of £800 they would be subject to the same BIK but would this all be due on sale rather than in the future.

Can anyone clarify the Salary Sacrifice options. I heard that this option for laptops is ending?

If anyone has any other ideas on how to do this I would love to hear from you.

Many thanks

Rob

Robert B
Posts: 2
Joined: Thu Mar 16, 2017 12:28 pm

Re: Laptop for Employees

Postby Robert B » Thu Mar 16, 2017 1:17 pm

NOte - I have seen the Salary Sacrifice option is ending this month so wont have time to set this up :(

SteLacca
Posts: 439
Joined: Fri Aug 07, 2015 2:17 pm

Re: Laptop for Employees

Postby SteLacca » Thu Mar 16, 2017 5:30 pm

You don't have to use a salary sacrifice arrangement. You can still loan them the money to purchase the laptop from you, and then take repayments from their net earnings each month. Even if interest free, as you say, because the total lent to each employee is less than £10,000 then no reportable beneficial loan arises.

AmanSood
Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: Laptop for Employees

Postby AmanSood » Fri Mar 17, 2017 10:56 am

Also just to add, if part of the loan is written off e.g. the £800 in your example, then this would be additional taxable earnings and although reportable on the Form P11D, it would have to be processed via the payroll for Class 1 Employer and Employee Class 1 NIC. So from an employee perspective, it's better to simply give them the laptop and they make good the £800 before 6 July following the end of the tax year. By doing this the employees would save NIC at either 12%/2%.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

AvocadoK
Posts: 1232
Joined: Wed Aug 06, 2008 3:46 pm
Location: Lancashire

Re: Laptop for Employees

Postby AvocadoK » Sun Mar 26, 2017 7:42 pm

Also watch out for the Consumer Credit Act. If you make loans of more than £1,000, you need a licence. Otherwise, the loans are unenforeceable against staff.
AK

bd6759
Posts: 3076
Joined: Sat Feb 01, 2014 3:26 pm

Re: Laptop for Employees

Postby bd6759 » Sun Mar 26, 2017 11:48 pm

Also watch out for the Consumer Credit Act. If you make loans of more than £1,000, you need a licence. Otherwise, the loans are unenforeceable against staff.
AK
There is no mention of them charging interest.


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