Thanks for your reply. I have looked before posting the question but couldn't see any similar question to the one I posted. I will wait for your link to be approved.
Hi
So do you mean we should just state on our policy HMRC guidance about transferring asset to an employee and they will have to pay tax on the 2nd market value of the furniture. Maybe we could ask for a donation towards the furniture to reduce that value. We just dont want the staff to decide that they want us to have the furniture back.
Thanks for your advice
Hi Hugo
Thanks I understand now. I dont think we want to include this as our remuneration package as some spend all £500, some spends £100 or some dont spend anything.
That is exactly the case. Not all staff use the allowance if they already have a desk and chair, but they can use it to buy a fan, filing cabinet etc. We just want to give staff all the necessary equipment for their working environment at home.
It will be way too much cost involved if we do come and collect a second desk/chair and find somewhere to store it. So we just want to have a policy where it works both ways and of course we don't want to be seen as we are avoiding paying tax and misuse of public money.
The £500 does not include phone, laptop and tablet. They always ask staff to return all IT equipment if they leave their employment.
Yes thats correct. They have to provide a receipt for the equipment. We either reimburse the cost if the employee paid for it or they can paying using our company expense card.
Hi
Yes I will analyse the renovation expenses like you and David suggest. But like you said, the property wont meet the conditions for an FHL in 2021/22 tax year. All the expenditure on renovation and white goods was incurred in 2021/22, should I just ignore them when doing their tax return this year and then assess them in their tax return next year 2022/23?
Should I just calculate their property income using the income and expenditure for the first 8 months for 21/22?
Thanks so much for your reply. I understand now. Before I just want to align the payroll date setting on Xero with the tax month but I understand it doesn't matter to HMRC. Its the payment date which decides the tax month.
Hi
Thank you so much for your help. The software chose the date I put the director details onto the software (In Jan 22) as his directorship start date. I have changed it to his directorship start date stated on Company House and it is all okay now. There is no NI to pay for March 22.
My answers
Thanks for your reply. I have looked before posting the question but couldn't see any similar question to the one I posted. I will wait for your link to be approved.
Thanks
Hi
So do you mean we should just state on our policy HMRC guidance about transferring asset to an employee and they will have to pay tax on the 2nd market value of the furniture. Maybe we could ask for a donation towards the furniture to reduce that value. We just dont want the staff to decide that they want us to have the furniture back.
Thanks for your advice
Hi Hugo
Thanks I understand now. I dont think we want to include this as our remuneration package as some spend all £500, some spends £100 or some dont spend anything.
Hi
If we include this as part of remuneration package, does the tax implication for transferring the asset to the employee still applies?
Thanks
Hi Bobbo
That is exactly the case. Not all staff use the allowance if they already have a desk and chair, but they can use it to buy a fan, filing cabinet etc. We just want to give staff all the necessary equipment for their working environment at home.
It will be way too much cost involved if we do come and collect a second desk/chair and find somewhere to store it. So we just want to have a policy where it works both ways and of course we don't want to be seen as we are avoiding paying tax and misuse of public money.
The £500 does not include phone, laptop and tablet. They always ask staff to return all IT equipment if they leave their employment.
Hi Bobbo
Yes thats correct. They have to provide a receipt for the equipment. We either reimburse the cost if the employee paid for it or they can paying using our company expense card.
Thanks
Hi David
We either reimburse the cost if the employee paid for the equipment or they can pay for it using our company expense card.
Hi
Yes I will analyse the renovation expenses like you and David suggest. But like you said, the property wont meet the conditions for an FHL in 2021/22 tax year. All the expenditure on renovation and white goods was incurred in 2021/22, should I just ignore them when doing their tax return this year and then assess them in their tax return next year 2022/23?
Should I just calculate their property income using the income and expenditure for the first 8 months for 21/22?
Thanks
Hi Hugo
Thanks so much for your reply. I understand now. Before I just want to align the payroll date setting on Xero with the tax month but I understand it doesn't matter to HMRC. Its the payment date which decides the tax month.
Thanks so much
Bic
Hi
Thank you so much for your help. The software chose the date I put the director details onto the software (In Jan 22) as his directorship start date. I have changed it to his directorship start date stated on Company House and it is all okay now. There is no NI to pay for March 22.
Thank you again and I really appreciate it