Expenses and benefits: assets made available to an employee
Work out the value
There are 2 steps to working out how much your asset is worth:
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Take the greater of either the asset’s annual value or the rental or hire charges you pay for it.
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Add anything else you’ve spent on the asset during the year, eg running costs.
The asset’s annual value is 20% of its market value when you first provided it as an employee benefit.
You should reduce the value proportionately if either of the following applies:
- you made the asset available to more than one employee during the year
- you used the asset directly for your business during the year in some other way than making it available to your employee
Salary sacrifice arrangements
If the cost of the 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.