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You are here: Home / BlackBerry / BlackBery Personal Use Tax

BlackBery Personal Use Tax

March 21, 2007 by Robb Dunewood 5 Comments

I know that there are several RIMarkable readers that live in the UK so I am hoping that a few of you can chime in a explain the BlackBerry Personal Use tax that goes into effect in April.

Please tell me if I’ve got this wrong, but, it looks like employers used to be able to give their employees up to £2,500 worth of equipment as a benefit in kind under the home computing initiative without tax consequences for private use. Starting in April, however, employees who use this equipment for significant personal use may have to pay taxes up to £500.

Are companies in the UK tax exempt when purchasing computer equipment? Here in the U.S. most states have a sales tax that is tacked on when BlackBerrys are first purchased in addition to sales tax on the the monthly service charges. It is no where near 20% percent, however.

[Via icWales.co.uk]

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Comments

  1. KingRichard says

    March 21, 2007 at 1:08 pm

    Companies will find away around the tax.
    Mark my words… If they can’t give them tech to use from home, they will give them giftcards, or paycheck deductions/additions/bonuses.
    The market always finds a way around the taxes and regulations.
    Hee hee.. Capitalism.. gotta love it!

    Reply
  2. Michael says

    March 21, 2007 at 2:25 pm

    I think (hope) it’ll be too difficult to work out what’s personal use, so no tax hike here. We’re taxed way too much anyway.

    In answer to the question posted though, we pay VAT on the initial purchase at 17.5% and on the monthly line rental/blackberry service fee.

    Reply
  3. Robb Dunewood says

    March 21, 2007 at 3:09 pm

    I thought taxes were high here in the U.S., but 17.5% is nuts.

    Reply
  4. Daniele says

    March 21, 2007 at 7:34 pm

    Well, if 17.5% is nuts, what about the 20% VAT we have in Italy?

    Reply
  5. BBAdmin says

    March 22, 2007 at 9:25 am

    It’s painful, the British Labour Government has been screwing us for years. I don’t see how they can police equipment that companies give out though.

    Reply

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