3.77 billion global internet users in 2017, equaling 50% penetration / 2.80 billion global social media users in 2017, equaling 37% penetration / 2.56 billion global social media users in 2017, equaling 34% penetration / 1.61 billion global e-commerce users in 2017, equaling 22% penetration (Digital View, 2016)
One of the most popular benefits we offer, this scheme allows employees to get a tablet, laptop or computer from leading manufactures such as Apple, ASOS, Dell, HP and Samsung. All of the devices are new.
The way it works is that your business buys the tablet, laptop or computer and the employee repays the cost over over an agreed period of time through their salary. This repayment period can be 6, 12, 18, 24 or 36 months, with most of the schemes we operate choosing 12 months.
The idea behind the government granting a tax savings (NI Saving) on the scheme is broaden online access to services such as internet banking, the ability to pay bills online and to allow parents to support their children with homework/online learning/research. Gaming consoles are not available on the scheme as we are not convinced they would follow the spirit of granting internet access to employees for the purposes noted above.
How is it paid for ?
Your business pays for the tablet, laptop or computer and recovers the money from the employees salary. If cashflow is a concern when looking at this benefit, My Benefits World can work with your business to set limits on the amount employees are allowed to spend, both on an individual and company wide basis. At the point the employee elects from the tablet, laptop or computer they are agreeing to the employer recovering from net pay any outstanding money owed for the device if they leave the business prior to repaying the full cost.
We’ve had several employers ask us about the impact of April 2017 tax changes on the scheme. Although the headlines in the press stated that employees were saving 32% or 42% off their tablet, laptop or computer (thus costing the treasury money) these were very misleading as it was only possible to achieve these levels of tax savings if the employee returned the device at the end of the repayment period – and in our experience no one ever has (why would you?). Therefore, this remains a taxable benefit with the employee saving National Insurance but paying tax on the value of their device. This means that as well as spreading the cost of the technology over an agreed period of time employees also benefit from a 12% NI saving if they are basic rate taxpayer (2% if they are higher rate).
Why offer this benefit ?
Whilst employees do appreciate the opportunity to save up to 12% off the cost off a tablet/laptop or computer, the overwhelming reason they engage in the benefit is the ability to spread the cost of repaying the device over a period of time with no credit or interest.
In our experience, when we ask employees why they are taking out the benefit we quite often find it is parents who are getting a device to to give their son or daughter access for educational purposes / write reports/essays for college/university. Parents are genuinely grateful that there employer has facilitated this.