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鈥檛 count as a taxable expense or benefit.
This means:
- you don鈥檛 have to report it to HMRC
- you don鈥檛 pay tax or National Insurance on it
This doesn鈥檛 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鈥檛 be exempt. You鈥檒l need to report on form P11D whichever amount is higher:
- the salary given up
- the cost of the items
These rules don鈥檛 apply to arrangements made before 6 April 2017 - check when the rules will change.
Technical guidance
The following guide contains more detailed information: