Expenses and benefits: assets bought, sold or given
What to report and pay
What you have to deduct, pay and report to HM Revenues and Customs (HMRC) depends on what you did with the asset, eg whether you bought it, sold it or gave it away.
Selling or giving away an asset
You must:
- report on form P11D
- pay Class 1A National Insurance and tax on the value of the benefit
Buying an asset
If you buy an asset from an employee for more than its market value, the premium you’ve paid counts as earnings, so:
- add it to your employee’s other earnings
- deduct and pay PAYE tax and Class 1 National Insurance through payroll