When an asset is placed at the disposal of an employee the benefit charge is calculated using the special rules however the employee uses it.

If the asset is used by the employee to carry out his or her duties, they may be able to get tax relief from the benefit charge to the extent of the business use. Class 1A NICs will be due on the whole of the benefit charge unless the employee is entitled to full tax relief from the charge.

If you want more detailed guidance on tax relief from the benefit charge look at EIM21636. If you want more detailed guidance on Class 1A NICs look at NIM15500 and NIM15550.

Level 3 Table of Contents