Home Computers for Employees – Tax Issues

With computers proving indispensable in the work environment and having become such an integral part of modern life, it is common for employers to provide their employees with computer equipment to use at home where the relevant computer equipment may be used either partly or wholly for non-work purposes. If an employer does provide a computer to an employee for use at home either wholly or partly for non-work purposes (rather than being provided solely for work purposes), how will the employee be taxed?

The tax treatment of an employee will depend on exactly what the employer is providing to the employee. This article looks at two common scenarios:

1. The employee is provided with computer equipment to use at home without there being any transfer in ownership of the equipment.