Expenses and benefits: items for disabled employees

As an employer, if you provide equipment or services to a disabled employee so they can do their work, it doesn’t count as a taxable expense or benefit.

This means:

  • you don’t have to report it to HMRC
  • you don’t pay tax or National Insurance on it

This doesn’t change if your employee also uses the equipment or services outside work. However, you must offer it on similar terms to any other employee who is or becomes disabled.

Different rules apply if you provide a car to a disabled employee.

Salary sacrifice arrangements

If you provide equipment or services as part of a salary sacrifice arrangement they won’t be exempt. You’ll need to report on form P11D whichever amount is higher:

  • the salary given up
  • the cost of the items

These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change.

Technical guidance

The following guide contains more detailed information: