Does Your Company’s Assets Provided for Private Use?

Once it was reported of an argument between HMRC and a business for not declaring an item of equipment the company has given for private use. This is a company which involves its employees with expensive photographic gear as part of their job. At one point this company has offered some old equipment to the employees for free as they were about to be replaced.

The old cameras had been worth about £900 each and the employees realised they would have to pay tax on this, but it seemed like a cheap option to get their hands on some top photo equipment.

The company declared this as a gift thinking that they won’t have any problem with it. But HMRC wanted to know whether during the time the employees used them for work they were allowed to take them home, implying that there might have been private use and taxable under the principles of benefit-in-kind (BiK) that had been overlooked.

If you have given any assets of the business to employees for their personal use, you may be inviting trouble from HMRC. Use the services of a tax advisor to avoid getting into trouble with HMRC. Contact KVS Accountants for tax advice or to file your tax return. KVS Accountants act as tax return accountants in Putney, Fulham, Barnes, Wandsworth, Battersea, Southfields, Earlsfield and Hammersmith.

 

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