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 does not count as a taxable expense or benefit.
This means you do not:
- have to report it to HMRC
- pay tax or National Insurance on it
This does not 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 will not be exempt. You’ll need to report on form P11D whichever amount is higher:
- the salary given up
- the cost of the items
Technical guidance
The following guide contains more detailed information: