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Exempted benefits
Regulations have been laid to ensure that disabled people will not have to pay tax on the private use of equipment or facilities provided to them to enable them to carry out their job. The provision of equipment, services or facilities which are used solely to carry out the duties of an employment, or where the private use is not significant, is exempt from tax, but where the private use is significant a tax charge can arise on the employee.
Exempted benefits
Regulations have been laid to ensure that disabled people will not have to pay tax on the private use of equipment or facilities provided to them to enable them to carry out their job. The provision of equipment, services or facilities which are used solely to carry out the duties of an employment, or where the private use is not significant, is exempt from tax, but where the private use is significant a tax charge can arise on the employee.
For disabled workers there are legislative arrangements, notably under Access to Work Programme and the Disability Discrimination Act 1995, which provide special equipment and services to enable them to take up or stay in work. This usually consists of equipment or facilities on the work premises used solely to carry out the job, so no tax charge arises. But in certain circumstances, for example where a hearing aid or wheelchair is provided, the employee may use the equipment full time, so that the private use is significant and an employee benefits tax charge could arise.
The new regulations will ensure that no tax charge will arise in such circumstances. They come into force on 9 July 2002.
(Source: Inland Revenue news release dated 18 June 2002.)
Retail prices index
The retail prices index figure for May 2002 is 176.2.
