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December 10, 2006

Taxed for surfing the web while at work

The British House Of Commons is debating the idea of taxing individuals who use computers at work for their own personal use. Think tax on company cars and you see the angle - if you use the computer for your personal use, then it will be a form of pay!! (by Piers Fawkes)

Under the rules that replace the scheme, office computers used in part for non-business purposes are treated as a benefit in kind, meaning that employees will have to pay income tax on them, and employers will have to pay national insurance contributions for them as well. On a computer bought for £2,000, an employee paying higher-rate tax would face a £160 bill each year and an employer would have to pay an extra £51.20.  Read more....

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