E-mails to be taxed
Posted on: 2nd May 2006
Both employers and employees could be forced to pay tax on personal e-mails or using the Internet for non-business-related purposes at work under chancellor Gordon Brown’s revised Budget proposals.
Under the proposals any PC owned by a company, which is used for significant non-business purposes, will be liable for an annual charge of £210.
Having access to the Internet and e-mail facilities at work is deemed as a benefit in kind, and as such the costs would fall upon both employees and employers alike with increased income tax levied against employees whilst additional National Insurance contributions would fall upon employers.
“Clear guidance is needed so that employers and employees know exactly whether or not they have a tax liability,” said Anne Redston, chairman of personnel taxes at the Chartered Institute of Taxation.