Cyber tax loophole for laptops

Shrewd bosses are profiting from a legitimate tax loophole that allows them to promote staff loyalty while avoiding the expense of cash bonuses, according to accountants UHY Hacker Young.

Employers can reward their employees with valuable computer equipment for private use without incurring expensive PAYE and National Insurance costs or passing on the burden of employee National Insurance.

The employer retains the title to the goods, and classifies them as being ‘on loan’, thus bypassing the rules on conventional gifts and bonuses.