PTC Benefits in Kind

jewels.p
jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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

Comments

  • *Jo
    *Jo Registered Posts: 509 Epic contributor 🐘
    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
    Ampsie Registered Posts: 145 Dedicated contributor 🦉
    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
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
    Thanks
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    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
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
    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
    *Jo Registered Posts: 509 Epic contributor 🐘
    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
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
    Oh no here I go again doubt.................so who is gonna post the right answer so we all pass this exam?:laugh:
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    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
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