Benefit in kind - Internet usage

[stevetheboy]

Hi, hopefully a quick and easy question...

 

As part of my work I am required to email documents to my office on a daily basis using my own internet connection. As such I am allowed to claim a fixed sum of £7 from the comapny as reimbusement. This pays part of my monthly internet bill.

 

However, the company have now declared this to HMRC and it is being treated as a benefit in kind.

 

Is this right? Surely if the company is paying only a percentage, they are only paying for their access to my connection?

 

Thanks!

[Gbarbm]

If the amount paid to you by the company is for business use, you can make a claim to HMRC by downloading form P87 and sending it to your tax office on the grounds that the expense is incurred wholly, necessarily and exclusively in the performance of the duties of your employment and is obliged to be incurred, within the provisions of Section 336 ITEPA (Income Tax, Earnings and Pension Act) 2003

This will have the effect of negating the charge.

You could also suggest to your employer that they apply to HMRC for a dispensation which will remove the need for them to declare the amount and you to have to counterclaim it as a business expense

[stevetheboy]

Thanks for that. Just what I need!

[Gbarbm]

Thanks for that. Just what I need!

 

You're welcome

 

Kind regards

Gbarbm