Internet, computers, phones and work related supplies

Employers may provide certain supplies or equipment to employees to enable them to work from home such as IT equipment, telephones and related items. This will generally not be treated as a taxable benefit, provided the equipment is used mainly for work purposes.

Internet

Employers may provide a dedicated high speed internet connection to an employee specifically for business use. This is not a Benefit in Kind (BIK) where private use by the employee is incidental.

Computer equipment

The following computer equipment may be provided specifically for business use:

• a computer (including a laptop or hand-held computer)
• a facsimile machine
• a printer
• a scanner
• a modem 
• discs, disc drives and other computer-peripheral devices.

This is not a BIK where private use by the employee is incidental and there is no transfer of ownership of the equipment.

Telephones or mobile phones provided by employer

Employers may provide a dedicated home telephone line or mobile phone to an employee specifically for business use. This is not a BIK where private use by the employee is minimal and there is no transfer of ownership of the equipment.

Note

Private use will be deemed incidental, in the context of telephones, where the cost of private use is no more than 5% of call costs.

Employee uses own phone for business purposes

Employers may pay an employee’s home telephone bill or mobile phone bill. This is not a taxable benefit where the telephone is used primarly for business purposes and private use is incidental.

Where the telephone is used for both personal and business use, an employer may pay an amount tax free in respect of the business use. This payment must be based on a reasonable estimate of the cost of the business use of the phone.

Where an employee is on call outside normal hours, the employer may pay up to 50% of the line rental costs tax free. If the employee proves that less than 50% of their phone use was private, the value of the benefit is reduced proportionally.

Employers must keep records of how they calculated the value of the benefit if it is less than 50% of the line rental costs.

Work-related supplies

Employers may provide certain furniture, equipment and facilities to remote working employees to enable them to work from home. This is not a BIK where private use is incidental and there is no transfer of ownership. 

This arrangement does not apply to employees who bring home work outside normal working hours.

Please see Remote working for further information.

Private use

If any of the above supplies or equipment are provided mainly for an employee’s private use, this is a BIK. Employers will be required to apply Income Tax, Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on the value of the benefit. Please see The provision of work related equipment and supplies for futher information.