This guide provides an overview of your tax and National Insurance contributions (NICs) obligations if you make an asset available for use by an employee. The rules in this area are complex. To go direct to more detailed information, choose the link below to ‘Technical guidance’.
The term ‘asset’ covers a wide range of items that you might make available to an employee. Examples include computers and televisions.
Different rules apply if you transfer the ownership of an asset to an employee rather than just making it available to them. See the separate A to Z entry on ‘Assets – bought, sold or given’.
Note that the rules in this guide don’t apply to cars, vans or living accommodation that you make available to an employee. Choose ‘More useful links’ below to find information on these topics.
On this page:
You make an asset available to an employee for business-only use.
For employees earning at a rate less than £8,500 per year, you have:
Unless you have a dispensation covering this item or one of the exceptions listed in the ‘Exceptions’ section below applies, then for company directors or employees earning at a rate of £8,500 or more per year:
How a dispensation can reduce your expenses and benefits reporting
There are two steps to working out the value to use:
1. Take the greater of
2. Add any other amounts you have spent during the tax year on making the asset available – such as any running costs you’ve covered.
You should reduce the value proportionately if either of the following applies:
You have no reporting requirements and no tax or NICs to pay for directors or employees earning at a rate of £8,500 or more per year if the asset you’re making available is:
These exceptions can still apply even if there is an insignificant amount of private use by the employee.
The rules for assets outlined in this guide don’t apply to cars, vans or living accommodation that you make available to an employee. Go to ‘More useful links’ at the end of the page for more information on these topics.
You make an asset available to an employee for private-only use or for mixed business and private use.
For employees earning at a rate less than £8,500 per year, you have:
For company directors or employees earning at a rate of £8,500 or more per year:
There are two steps to working out the value to use:
1. Take the greater of
2. Add any other amounts you have spent during the tax year on making the asset available – such as any running costs you’ve covered.
You should reduce the value proportionately if either of the following applies:
The rules for assets outlined in this guide don’t apply to cars, vans or living accommodation. Go to ‘More useful links’ at the end of the page for more information on these topics.
To check what's included in the £8,500 threshold for P11D reporting purposes, follow the link below.
EIM21630: Assets placed at the disposal of a director or employee
