Monday, July 20, 2020

Does a garden office count as a benefit in kind?


There appear to be no hard and fast rules about what you can and can't claim when you start working from a garden office (which is why we always say check with your tax advisor and the tax authorities before claiming anything). Here's an interesting Q&A from the Irish Independent on the subject of 'Bik', benefits in kind.

The questioner's company is going to pay a substantial grant towards homeworking and they wonder if there is a tax implication in so doing, particularly if it is subject to benefit in kind. Here's the reply from Joanna Murphy, CEO of Taxback.com:
"Benefit in kind is any non-cash benefit provided by employers to their employees, such as company cars, medical insurance etc. As these have a monetary value, they must be treated as income. Revenue Commissioners confirmed that employers may provide the following equipment and facilities to an e-working employee for business use: computer or laptop, printer, scanner, software, telephone, mobile, broadband, office furniture, which won't be treated as Bik where private use is minimal. A garden office could potentially qualify for the above tax treatment, where private use is minimal. However, I would recommend that an approval from Revenue is taken in advance."
Image courtesy Garden2office.   -------------------------------------------------
Monday posts are sponsored by garden2office, the Swedish garden office specialists. Click here for more details.

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