As an employer buying, selling or giving assets to your employees, you have certain tax, National Insurance and reporting obligations. What’s included Assets can include: computers televisions cars bicycles If you let your employee use an asset that you own, you should see the guide for assets made available .

What to report and pay

What you have to deduct, pay and report to HM Revenues and Customs ( HMRC ) depends on what you did with the asset, eg whether you bought it, sold it or gave it away. Selling or giving away an asset You must: report on form P11D pay Class 1A National Insurance and tax on the value of the benefit Buying an asset If you buy an asset from an employee for more than its market value, the premium you’ve paid counts as earnings, so: add it to your employee’s other earnings deduct and pay PAYE tax and Class 1 National Insurance through payroll

Give or sell a new asset to an employee The value is the higher of: how much the asset is worth second-hand when you transfer it how much you bought the asset for Give or sell a used or depreciated asset (not previously made available as a benefit) The value is how much the asset is worth second-hand when you transfer it. Give or sell a used asset that you’ve previously made available as a benefit The value is the higher of: how much the asset is worth second-hand when you transfer it how much the asset is worth when you first provided it as a benefit, minus any amount that was subject to tax or National Insurance while you were providing it as a benefit See an example of how this works. Exceptions for assets previously available as a benefit The value is calculated differently for: cars vans bicycles or cyclists’ safety equipment living accommodation computer equipment that you made available for private use when a limited exemption for computers was in force (until 6 April 2006) The value to use is how much the asset is worth second-hand when you transfer it. Buy an asset from an employee The value to use is the amount you pay over the asset’s market value. Salary sacrifice arrangements If the cost of asset is less than the amount of salary given up, report the salary amount instead. These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change .

The following guide contains more detailed information: assets transferred to a director or employee

Expenses and benefits: assets bought, sold or given

Overview

As an employer buying, selling or giving assets to your employees, you have certain tax, National Insurance and reporting obligations.

What’s included

Assets can include:

computers
televisions
cars
bicycles

If you let your employee use an asset that you own, you should see the guide for assets made available.

View a printable version of the whole guide

Expenses and benefits: assets bought, sold or given

Overview

What’s included

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Expenses and benefits: assets bought, sold or given

Overview

What’s included

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