Expenses and benefits: assets bought, sold or given

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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:

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