Are staff iPads a benefit in kind?
SM writes: We have provided a number of our staff with iPads for work use, but are well aware they may also use them for private communications. I have no desire to forbid this but would want to be clear with staff about any potential tax issues arising.
As long as the iPads were provided for the purpose of enabling your employees to carry out their duties outside the office and there is no significant private use, no taxable benefit arises, writes Jon Sutcliffe, partner at Kingston Smith LLP.
The position would obviously be strengthened if you have a policy that forbids private use, but clearly you would rather not impose this.
If you allow significant personal use, such as internet surfing, private emails and games, then a benefit will occur.
The provision of an iPad, or any computer, to an employee to carry out their employment duties away from the office where there is no significant private use is exempted from benefit-in-kind rules.
If there is a genuine business purpose for the provision of the equipment, even a relatively high level of private use may be considered insignificant in the context of the employees’ duties and the necessity for them to have the equipment or services provided to carry out those duties.
Conversely, the absence of a genuine business purpose will probably lead to a benefit.
You are not required to keep a log of the private use, but you should have a clear policy for employees and remind them that the range of installed apps on their iPads will be a good indicator of private use.