As an employer, you don’t have to report or pay tax and National Insurance on equipment, supplies or services you provide on your premises - as long as your employee needs it to do their job.
- office or workshop accommodation (not living accommodation)
- office or workshop furniture and equipment, eg desks, computers, work benches and tools
- telephone and internet connections
Different rules apply if your employee works from home. See the homeworking guide for more information.
Salary sacrifice arrangements
If you provide office and workshop equipment and supplies as part of a salary sacrifice arrangement it won’t be exempt. You’ll need to report on form P11D whichever amount is higher:
- the salary given up
- how much you paid for the office and workshop equipment and supplies
These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change.