HM Revenue and Customs have published revised guidance via a 'Revenue and Customs Brief' on the VAT treatment of computers made available by employers for use in their employees homes; this follows withdrawal of the tax exemption which allowed employers to loan computer equipment to their employees tax free.
HMRCs revised policy
HMRCs policy to allow full VAT recovery without any adjustment for private use, in circumstances where there is any business use, is withdrawn from the date of this Revenue and Customs Brief.
With immediate effect businesses must consider why the computer is being provided to the employee to determine the level of VAT that can be claimed. Businesses will only be able to claim full VAT recovery without any requirement to account for VAT on any private use (subje...