Is this a Fringe Benefit?

Discussion in 'NZ Computing' started by Deck, Nov 8, 2005.

  1. Deck

    Deck Guest

    I'm a programmer and I'm allowed to work from home.
    If my employer is willing to pay for my internet connection
    (phone/broadband),
    is it considered a fringe benefit ? Or should it be just like
    an ordinary company expenses. My employer should also be
    able to contact me anytime during the day so they'll provide
    me my mobile phone. Does it also falls in the same category?
    I'm basically interested how it affects the taxes both for me
    and my employer.

    thanks in advance!
     
    Deck, Nov 8, 2005
    #1
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  2. Deck

    Sue Bilstein Guest

    On Tue, 8 Nov 2005 20:15:33 +1300, "Deck" <> wrote:

    >I'm a programmer and I'm allowed to work from home.
    >If my employer is willing to pay for my internet connection
    >(phone/broadband),
    >is it considered a fringe benefit ? Or should it be just like
    >an ordinary company expenses. My employer should also be
    >able to contact me anytime during the day so they'll provide
    >me my mobile phone. Does it also falls in the same category?
    >I'm basically interested how it affects the taxes both for me
    >and my employer.
    >
    >thanks in advance!
    >


    Both sound like straight business expenses. If you use them only for
    work. If there's a private-use component, maybe there's FBT on that.

    Just guessing though, I haven't studied FBT.
     
    Sue Bilstein, Nov 8, 2005
    #2
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  3. Deck

    Stephen P Guest

    Sue Bilstein wrote:

    > On Tue, 8 Nov 2005 20:15:33 +1300, "Deck" <> wrote:
    >
    >>I'm a programmer and I'm allowed to work from home.
    >>If my employer is willing to pay for my internet connection
    >>(phone/broadband),
    >>is it considered a fringe benefit ? Or should it be just like
    >>an ordinary company expenses. My employer should also be
    >>able to contact me anytime during the day so they'll provide
    >>me my mobile phone. Does it also falls in the same category?
    >>I'm basically interested how it affects the taxes both for me
    >>and my employer.
    >>
    >>thanks in advance!
    >>

    >
    > Both sound like straight business expenses. If you use them only for
    > work. If there's a private-use component, maybe there's FBT on that.
    >
    > Just guessing though, I haven't studied FBT.


    Both will be fully deductible. IRD accepts that there is sometimes a
    secondary fringe benefit on business related items but doesn't pursue it
    (vigourously ?). Provided the benefit is not disproportional to the
    business use. If you, or your employer, are inclined to try and fiddle the
    tax system it may be caught up in a bigger issue but by itself you should
    be fine.

    There is a quarterly amount, I think $70 of FB that is able to be provided
    without penalty. Howeer for the finer details you should consult the
    documents and or IRD. They're actually pretty helpful and not interested in
    kicking you at the first hurdle.

    How times have changed.

    --
    get me direct by removing the word.
     
    Stephen P, Nov 8, 2005
    #3
  4. Deck

    Chris Hope Guest

    Stephen P wrote:

    > Sue Bilstein wrote:
    >
    >> On Tue, 8 Nov 2005 20:15:33 +1300, "Deck" <> wrote:
    >>
    >>>I'm a programmer and I'm allowed to work from home.
    >>>If my employer is willing to pay for my internet connection
    >>>(phone/broadband),
    >>>is it considered a fringe benefit ? Or should it be just like
    >>>an ordinary company expenses. My employer should also be
    >>>able to contact me anytime during the day so they'll provide
    >>>me my mobile phone. Does it also falls in the same category?
    >>>I'm basically interested how it affects the taxes both for me
    >>>and my employer.
    >>>
    >>>thanks in advance!
    >>>

    >>
    >> Both sound like straight business expenses. If you use them only for
    >> work. If there's a private-use component, maybe there's FBT on that.
    >>
    >> Just guessing though, I haven't studied FBT.

    >
    > Both will be fully deductible. IRD accepts that there is sometimes a
    > secondary fringe benefit on business related items but doesn't pursue
    > it (vigourously ?). Provided the benefit is not disproportional to the
    > business use. If you, or your employer, are inclined to try and fiddle
    > the tax system it may be caught up in a bigger issue but by itself you
    > should be fine.
    >
    > There is a quarterly amount, I think $70 of FB that is able to be
    > provided without penalty. Howeer for the finer details you should
    > consult the documents and or IRD. They're actually pretty helpful and
    > not interested in kicking you at the first hurdle.
    >
    > How times have changed.


    Yep, they're heaps better than they used to be. I forgot to file my PAYE
    a few months back and got a letter about three days later which said as
    long as I did it within the next few days there'd be no penalty etc.
    And then when I forgot again... the penalty was written off as being a
    small balance. Must remember not to forget again...

    --
    Chris Hope | www.electrictoolbox.com | www.linuxcdmall.com
     
    Chris Hope, Nov 8, 2005
    #4
  5. Deck

    XP Guest

    On Tue, 8 Nov 2005 20:15:33 +1300, "Deck" <> wrote:

    >I'm a programmer and I'm allowed to work from home.
    >If my employer is willing to pay for my internet connection
    >(phone/broadband),
    >is it considered a fringe benefit ? Or should it be just like
    >an ordinary company expenses. My employer should also be
    >able to contact me anytime during the day so they'll provide
    >me my mobile phone. Does it also falls in the same category?
    >I'm basically interested how it affects the taxes both for me
    >and my employer.
    >
    >thanks in advance!
    >




    Yes its the Same as a Company car, its a taxable fringe benefit if its used
    for personal use..
     
    XP, Nov 8, 2005
    #5
  6. Deck

    Wog Guest

    "Deck" <> wrote in message news:dkpjah$qrn$...
    > I'm a programmer and I'm allowed to work from home.
    > If my employer is willing to pay for my internet connection
    > (phone/broadband),
    > is it considered a fringe benefit ? Or should it be just like
    > an ordinary company expenses. My employer should also be
    > able to contact me anytime during the day so they'll provide
    > me my mobile phone. Does it also falls in the same category?
    > I'm basically interested how it affects the taxes both for me
    > and my employer.
    >
    > thanks in advance!


    Why would you ever want to ask the question?
     
    Wog, Nov 8, 2005
    #6
  7. "Deck" <> wrote in message news:dkpjah$qrn$...
    > I'm a programmer and I'm allowed to work from home.
    > If my employer is willing to pay for my internet connection
    > (phone/broadband),
    > is it considered a fringe benefit ? Or should it be just like
    > an ordinary company expenses. My employer should also be
    > able to contact me anytime during the day so they'll provide
    > me my mobile phone. Does it also falls in the same category?
    > I'm basically interested how it affects the taxes both for me
    > and my employer.
    >
    > thanks in advance!
    >


    ask the ird?
     
    news.xtra.co.nz, Nov 8, 2005
    #7
  8. Deck

    XPD Guest

    "Deck" <> wrote in message news:dkpjah$qrn$...
    > I'm a programmer and I'm allowed to work from home.
    > If my employer is willing to pay for my internet connection
    > (phone/broadband),
    > is it considered a fringe benefit ? Or should it be just like
    > an ordinary company expenses. My employer should also be
    > able to contact me anytime during the day so they'll provide
    > me my mobile phone. Does it also falls in the same category?
    > I'm basically interested how it affects the taxes both for me
    > and my employer.


    Its a fine line between FBT and tax..... ask your friendly IRD rep :)
     
    XPD, Nov 8, 2005
    #8
  9. Deck

    Deck Guest

    "Wog" <woggy#1@hotmail .com> wrote in message news:...
    >
    > Why would you ever want to ask the question?
    >


    why not?
     
    Deck, Nov 9, 2005
    #9
  10. Deck

    Wog Guest

    "Deck" <> wrote in message news:dksgsn$nnj$...
    >
    > "Wog" <woggy#1@hotmail .com> wrote in message
    > news:...
    >>
    >> Why would you ever want to ask the question?
    >>

    >
    > why not?

    Because it raises an issue that might invite a "ruling" .
     
    Wog, Nov 9, 2005
    #10
  11. Deck

    Max Guest

    "XPD" <> wrote in message
    news:...
    >
    > "Deck" <> wrote in message news:dkpjah$qrn$...
    > > I'm a programmer and I'm allowed to work from home.
    > > If my employer is willing to pay for my internet connection
    > > (phone/broadband),
    > > is it considered a fringe benefit ? Or should it be just like
    > > an ordinary company expenses. My employer should also be
    > > able to contact me anytime during the day so they'll provide
    > > me my mobile phone. Does it also falls in the same category?
    > > I'm basically interested how it affects the taxes both for me
    > > and my employer.

    >
    > Its a fine line between FBT and tax..... ask your friendly IRD rep :)
    >
    >


    Its a legit expense, just ask your accountant, I suspect the tax department
    wouldn't even waste their time over questioning it.
     
    Max, Nov 10, 2005
    #11
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