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Computers - exempt BIK?

Computers - exempt BIK?

A friend of mine works for a local NHS trust who are running a scheme whereby employees of the trust, can purchase a new computer via a salary sacrifice scheme effective for IT/NIC (Ees/Ers).

As I understood it; such supply of computers as an exempt BIK was abolished circa 2005-06

But having a quick look on google, there are a few firms selling this salary sacrifice scheme - with one boasting that NHS trusts are clients that have had this scheme implemented (which supports my friends story)

Can anyone shed any light as to how these are working?


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05th Dec 2012 10:22

Work-related training

The idea is that the computer is provided as a training-related asset to run software aimed at improving skills of the employees likely to prove useful to them in performing the duties of their employment.

If HMRC decided to attack it though, which they inevitably will at some stage, the scheme is likely to fail.

The definition of a training related asset, falling within the exemption is:


"an asset provided for use only:(i) in the course of the training, or(ii) in the course of the training and in the performance of the duties of the employee’s employment, but not to any significant extent for other use."

I imagine that computers under these arrangements are used to a significant extent for non-employment and non-training purposes and computers when examined do tell tales.

Thanks (1)
By bthiim
05th Dec 2012 11:16

Crafty ... I wonder if the NHS have developed some work-related App given the scheme also offers iPads to the NHS employees otherwise there isn't anyway other way they could install software on it (that I know of?) which could be aimed at improving their work-related skills - unless they are obliged to download the "letterpress" app to increase their spelling skills!

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By chetan
05th Dec 2012 11:22

The website you link to says: " of national insurance and with some tax saving."  Why only "some" tax saving?  I would be sceptical.  We recently received a email promoting a scheme which was almost identical to the website you link to as follows:

"Would you like to have an iPad from as little as £2.00 per week through a salary sacrifice scheme?

Your employees can have a brand new tablet, laptop or PC for use at home and conveniently pay for it through their salary over 24 or 36 months.

How does the employer benefit from the salary sacrifice scheme?

•             Cash flow neutral scheme

•             Increased employee IT skills

•             Enhanced employee motivation

•             Employee retention and loyalty tool

How does the employee benefit from the salary sacrifice scheme?

•             The latest high specification tablets, laptops or computers

•             Significant savings when compared to the high street

•             Affordable and convenient payments direct from salary

•             No credit checks

•             No deposit payable

•             Benefit from employer purchasing power"

Note that the email carefully avoids the mention of any tax/NIC savings but does mention "salary sacrifice", which in my opinion is a bit misleading.  To me this looks like a bulk-buying scheme rather than a salary sacrifice scheme.

Can someone explain how they achieve NIC saving and "some" tax saving?  Very few benefits nowadays are taxable but free from NIC.

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By bthiim
05th Dec 2012 11:34

This is the NHS agents

Apparently these are the outfit responsible for the relevant NHS scheme - they do state there are tax and NI savings to be made

Apparently the computers/tablets are being provided to staff to improve IT literacy ... whether this is wide enough to treat is as a training related asset


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