Can I claim back tax on a laptop bought for work as an employee?

Wayne_O_Mac

beany_bot wrote: »

OK here is another one. I work a lot from home. Can I claim back part of tax paid on my heating etc? the same way self employed people do?

Does your employer require you to work at home, or do you choose to do so?

uknick

beany_bot wrote: »

That's really not the point I am making.

My point is. If a laptop is considered tax deductible for use in business. Then surely that is black and white? Shouldn't matter if you are an employee or self employed. It makes no difference to how VAT is viewed as a "luxury" item tax.

Sorry, I thought you were talking about income tax, not VAT.

Self employed can only claim back VAT if they are VAT registered.

TheCyclingProgrammer

beany_bot wrote: »

That sucks that self employed people would get tax relief on a laptop that for business whereas I don't.

Business costs (whether it's for a sole trader or a company) only have to be wholly and exclusively for business purposes. That's the rules.

I imagine the reason why for employees it must also be necessarily for business purposes is to ensure fairness and equal treatment for all employees. If you're just buying something to make your life easier then that is your choice. It's not something you absolutely require to do your work nor is it mandated by your employer that you purchase one so no tax relief.

There's no point in comparing yourself to the self employed - you are not self employed. Self employed people are running a business and as such there is a bit more flexibility when it comes to tax relief on costs but as has been mentioned they do not benefit from some of the benefits and protections of being an employee.

TheCyclingProgrammer

beany_bot wrote: »

OK here is another one. I work a lot from home. Can I claim back part of tax paid on my heating etc? the same way self employed people do?

If you are required to work from home you can claim tax relief on any ADDITIONAL costs you have incurred as a result so long as you can show how this has been calculated.

Alternatively, you may claim £4/week for use of home without requiring further evidence.

If you voluntarily work from home, then you cannot claim tax relief however your employer can pay you an extra £4/week tax free.

sheramber

beany_bot wrote: »

That's really not the point I am making.

My point is. If a laptop is considered tax deductible for use in business. Then surely that is black and white? Shouldn't matter if you are an employee or self employed. It makes no difference to how VAT is viewed as a "luxury" item tax.

But it isn't your business, it is your employer's business so it is his expense.

You need to convince your employer that it is to his financial advantage to supply you with a laptop so you can do your job more efficiently. Otherwise , do it without a laptop and let him see the reduced results.

Pennywise

Or the practical answer is to ask the employer to buy it, and just deduct their "net" cost from your wages. I.e. they'll be able to recover the 20% vat, and they'll save 13.8% employers NIC on your reduced wages. So for a computer you'd pay £600 for, I'd suggest you accept a drop in gross pay of around £450, which is even better as you don't pay income tax nor employees NIC on that, so your "net" cost would be around £300. If you can't take the hit in a single month (or if it fouls up minimum wage) then get the employer to spread it over several months. This is pretty standard practice and is basically "salary sacrifice".

Raxiel

Pennywise wrote: »

Or the practical answer is to ask the employer to buy it, and just deduct their "net" cost from your wages. I.e. they'll be able to recover the 20% vat, and they'll save 13.8% employers NIC on your reduced wages. So for a computer you'd pay £600 for, I'd suggest you accept a drop in gross pay of around £450, which is even better as you don't pay income tax nor employees NIC on that, so your "net" cost would be around £300. If you can't take the hit in a single month (or if it fouls up minimum wage) then get the employer to spread it over several months. This is pretty standard practice and is basically "salary sacrifice".

I don't think you can avoid the income tax with salary sacrifice (not sure about VAT either), they'd consider the company gifting the laptop to an employee a 'benefit in kind'.

The alternative is for the laptop to remain property of the company (meaning it'd need to be returned if they ever left) in which case the employee is technically agreeing to work a few days or weeks for free in return for the company making their job easier (not something I'd be willing to do, but it's up to OP)

maisie_cat

For the business the expense would be deductible but you and the business are separate entities. As an aside, I always bought things personally that were not technically required to do the job but made it better for me. Who hasn't bought their own pens instead of the rubbish ones in the stationary cupboard? If the purchase of a laptop or tablet makes you more efficient and makes you "shine" you'll get the cost back when you are promoted or otherwise able to demonstrate how brilliant you are. The initiative of purchasing your own kit won't be missed either, if your manager is any good.

uknick

Raxiel wrote: »

I don't think you can avoid the income tax with salary sacrifice (not sure about VAT either), they'd consider the company gifting the laptop to an employee a 'benefit in kind'.

The alternative is for the laptop to remain property of the company (meaning it'd need to be returned if they ever left) in which case the employee is technically agreeing to work a few days or weeks for free in return for the company making their job easier (not something I'd be willing to do, but it's up to OP)

Quoted from HMRC tax manual (EIM42750)


"In the past, the term salary sacrifice was mainly used to refer to the giving up of rights to future cash remuneration in return for the employer’s contributions to a registered pension scheme. Now it is used to describe any situation where an employee gives up a right to future cash remuneration in return for a benefit in kind."

p00hsticks

maisie_cat wrote: »

Who hasn't bought their own pens instead of the rubbish ones in the stationary cupboard? If the purchase of a laptop or tablet makes you more efficient and makes you "shine" you'll get the cost back when you are promoted or otherwise able to demonstrate how brilliant you are. The initiative of purchasing your own kit won't be missed either, if your manager is any good.

A laptop is slightly different from a pen though.

Will the OP be wanting to access office e-mails on it ?
Or run work software ?
What about holding customers names and addresses ?
How will they protect the data on it and ensure it is secure ?

Far better to insist that, if really necessary for the job, that the employer provides the kit along with all the relevant security and other software and support maintentance required.