Personal use of a company PC could incur tax

This was a news story on our company intranet this morning. This is beyond crazy...lol! I can't imagine this would ever be implemented.

What worries me is the thought process here. Sending e-mail and browsing the web...a taxable benefit?  Don't they already get enough money for your average Joe?

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.
Businesses could have to pay £210 tax a year on every work computer used for sending personal e-mails or surfing the internet, tax experts have advised.
The Chartered Institute of Taxation said the change will become a "new bureaucratic burden" on employers.
The new rules, set out in this year's Budget in March, state that computers that are used for significant non-business purposes should be regarded as a benefit in kind, meaning that employees will have to pay income tax on them and employers will have to pay additional national insurance contributions.
Anne Redston, chairman of personal taxes at the institute, said that more clarification was needed.
"Clear guidance is needed so that employers and employees know exactly whether or not they have a tax liability," she said.
But the Treasury said the regulations would not have a significant effect on businesses and that the law had been designed to prevent fraud or "blatant overuse" of company computers.  

Is it just me or shouldn't the company moniter computer usage not the government.... what will they think of next? 

There is a deminimus built into the legislation.  The vast majority of persons who only surf for a short break during lunch would be exempted.  The people who have laptops, take them home, or have computers at home provided by their boss; who use these during off-hours to play games/chat/watch TV on the laptop would be the actual target group that has to pay.  What if you're running a digital radio (personal) whilst working?  (I often run clips from The Daily Show while reading tax news.)  I assume the work would override the personal aspect.

So ridiculous.  Great, another behemouth bureaucracy a la the Tax Credits Office to police this, and Gordon Brownnose kills two birds with one stone:  more taxes AND pork barrell jobs.  What a coup de grace for business!

Don't they already have to pay taxes on office equipment like computers and services like internet supply?

 

If the government can get money out of, consider it taxable.

There are several different US and UK concepts here.  The previous contributions muddle these up a little.

1. The UK has long had tax legislation on how to calculate the tax benefit of any employer provided appliance or service.  Without these rules all us folks would have to do is get provided with all of our earnings in non-cash forms and we'd all avoid tax.
2. The employer in the UK figures out the amount of each non-cash benefit and reports this to the employee annually on a form P11D (which is separate from the P60 used to report cash wages).
3. In the US conversely the employer includes both cash and non-cash compensation together in one W-2.
4. In both the UK ans the US it does not matter what your employer has reported on the W-2 or P60/P11d.  The onus on the individual when filing a tax return is to include total earnings (whether or not the employer has gotten it right).
5. The Finance Bill (not yet signed into law) has removed the exemption for home computers in order to raise tax of (if I recall correctly) some £150 million.  Gordon Brown's argument is that we would prefer the money spent on, say, hospitals as against office workers.
6. In the US such benefits might escape tax as they could be considered deminimus fringe-benefits.  No such rule exists in the UK, so any benefit is taxable unless exempt by law or covered under a dispensation agreed with the Revenue.
7. The rules remain unclear over use of VoIP, PDAs which include 'phones and other technolgical developments.
8. Because the law is not yet signed, now is the time to lobby your MP or Gordon Brown directly if you are unhappy.

Back to the main point.....the UK gov is going OTT even thinking about taxing personal email and browsing...what's next, taxable free water and tea in the office? 

In a similar vein when it comes to taxes, its already absurd that a person is "taxed" on paying for private health and dental care as a benefit. Talk about being "socially" responsible for your own needs when the NHS is over stretched and can't provide services in a timely manner.  What's wrong with an individual wanting to get the care they need if they want it and taking themselves out of the NHS bottleneck.....seems that helps both the person who can pay for personal healthcare and the ones that have to rely on the NHS. I really don't get it?

Jules - tea, coffee and water normally come under the definition of a workplace canteen, which is specifically exempt.

Medical insurance is taxable in the same way as salary.  Are you arguing that salary should not be taxable because I am saving the state from having to pay me benefits because I am choosing to work?

If one is unhappy with the tax system, then the ballot box is the way to change this.  Or would you prefer a Boston tea party?

Are you arguing that salary should not be taxable because I am saving the state from having to pay me benefits because I am choosing to work?

Bizarrely this sounds logical.  I like it!   

If the government can get money out of, consider it taxable.

That about sums it up.