PTC Benefits in Kind

jewels.p

I have been looking through my book but can't find it now but how is it you calculate a benefit in kind for the supply of a Laptop from your employer?

Is it just the normal 20% of the value? I think I might be getting muddled up with CGT and Benefits in Kind cause I think I answered a question somewhere that there was no assessable benefit but got it wrong. (I think cause I was thinking of it as a wasting chattel which refers to CGT) Brain overload again!

Can anyone confirm the correct answer please

*Jo

jewels.p wrote: »

I have been looking through my book but can't find it now but how is it you calculate a benefit in kind for the supply of a Laptop from your employer?

Is it just the normal 20% of the value? I think I might be getting muddled up with CGT and Benefits in Kind cause I think I answered a question somewhere that there was no assessable benefit but got it wrong. (I think cause I was thinking of it as a wasting chattel which refers to CGT) Brain overload again!

Can anyone confirm the correct answer please

i think it is 20% of the market value at time of purchase per annum. I would assume if this is provided for work purposes that it would be exempt, but someone else would have to clarify this.

Ampsie

I'm pretty sure that if it was provided for personal use then it is 20%

But if it is wholly, exclusively and necessary in order to perform employments duties then is allowable.

AMpsie

jewels.p

Thanks

noodles

I think that they may also include the odd payment that he may have made personally towards the laptop,
do we then do 20% of laptop less the payment amount or
cost of laptop less payments made * 20%
Always get confused by this

jewels.p

nscuffell wrote: »

I think that they may also include the odd payment that he may have made personally towards the laptop,
do we then do 20% of laptop less the payment amount or
cost of laptop less payments made * 20%
Always get confused by this

I got stuck on this before. You multiply the cost of the Laptop by 20% to get assessable amount THEN deduct contribution. The only time you take the contribution off first is if it is a Capital Contribution towards the cost of a car. (I think!:laugh:)

*Jo

I thought you deducted a capital contribution from the market value before deducting the 20% whereas if a contribution to the running costs it would be deducted after calculating the taxable benefit.

So if the laptop cost £1000 and personal contribution to purchase of £100 this would give a taxable benefit of (£1000-£100 x 20%) £180 per annum.

Again I could be wrong.

jewels.p

Oh no here I go again doubt.................so who is gonna post the right answer so we all pass this exam?:laugh:

noodles

I have just looked it up for us - is it laptop * 20% less how much contributed
now we will remember this and get it right on the day!!

good luck
nicky