Documents for Business
In excess of 1,000 customisable documents covering every conceivable business issue.Introduction to this document
Tax deduction from benefits in kind claim
Where an employee is taxable on a benefit in kind resulting from the use of an asset owned by their employer and they partly use the asset for business purposes, the employee is entitled to claim a deduction from the taxable amount by making a special claim.
Taxable benefit
The provision of an employer-owned asset by an employee results in a benefit in kind where the asset is available for private use. However, where the employee also uses the asset for business purposes they can claim a deduction from the taxable amount. A deduction is allowed where had the employee incurred and paid the cost of the benefit, the whole or part of the amount paid would have been deductible under the general expenses rules. The amount of deduction that can be claimed is equal to the amount that would have been deductible.
A claim for a deduction can be made using our Tax Deduction from Benefits in Kind Claim.
Time limit
The claim must be made within four years of the end of the tax year the expense was paid in.
