Employees

The sections below contain tax saving advice for employees.

Provision of computer equipment

Since 6th April 1999, if an employer lends a computer to an employee, and the value of the computer equipment (inclusive of VAT) is £2000 or less there will be no benefit in kind on the employee.

A taxable benefit arises on any cost over £2000. If the equipment is only available to directors and senior staff the exemption will not be given.

Form P60/P11D

Your employer must provide you with your end of year form P60 by 31st May following the end of the tax year and your P11D by 6th July (if applicable). You will need to keep these if you complete a tax return.

Dispensation items

If your P11D does not include an item that you think it should (for example travel expenses paid to you) it is probably covered by what is known as a dispensation. This is where your employer has an agreement with HM Revenue & Customs that items that are benefits in kind but which are claimed as 100% business use by the employee do not need to be shown on the form P11D. If you are in any doubt you should check the position with your employer.

Multiple employments

If you have more than one job and you earn less than your personal allowance (basic personal allowance for 2007/2008 is £5,225) you should ask your tax office to split the allowance between your employments.

Pool cars

If you use a company car at work, there is no tax payable if you use a pool car. To qualify, the car must be available to, and be used by, more than one employee. It shouldn't normally be kept overnight at or near an employee's home. Private use of the car must be incidental to business use.

This page was last reviewed on 03 April 2006.
The information may not reflect changes in legislation made after this date.