When an employee is provided with a benefit by the transfer of the ownership of an asset, the cost of the benefit (this is called the "cash equivalent") is normally the expense incurred by the person providing the benefit, less any amount made good by the employee.

If an employee earning at a rate of £8,500 a year or more has an asset placed at their disposal, without any transfer of ownership, there are special rules for the amount of the benefit charge. EIM20101 shows you how to work out whether an employee earns £8,500 or more.

At the disposal is not the same as used

These special rules apply when an asset is placed at the disposal of an employee. This means that if an asset is available for use by an employee, a tax charge and a liability for Class 1A NICs can arise whether or not the asset is actually used.

If you want more detailed guidance on these special rules look at EIM21630 onwards.

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