Hearing Aid

[phpcontractor]

Hi

Has anybody here purchased a hearing aid through their limited company and reclaimed the VAT plus submitted as a business expense?

Looking at HS207 Non-taxable payments or benefits for employees (2016) - GOV.UK

"If you are a disabled employee and your employer provided you with special equipment to help you to work, such as a wheelchair or hearing aid, this exemption applied even if your private use of the equipment was significant because it was also used outside work."

I have read elsewhere that you will have to submit the cost on your P11D as a benefit in kind.

I would not classify myself as disabled but I have previously had a hearing test and I have 25% hearing loss. Getting a bit of a joke when I keep having to ask people to repeat themselves. Could go through the NHS but then that needs a referral and a hospital visit then the hearing aids that they give you.

Thanks

[Lance]

Hi

Has anybody here purchased a hearing aid through their limited company and reclaimed the VAT plus submitted as a business expense?

Looking at HS207 Non-taxable payments or benefits for employees (2016) - GOV.UK

"If you are a disabled employee and your employer provided you with special equipment to help you to work, such as a wheelchair or hearing aid, this exemption applied even if your private use of the equipment was significant because it was also used outside work."

I have read elsewhere that you will have to submit the cost on your P11D as a benefit in kind.

I would not classify myself as disabled but I have previously had a hearing test and I have 25% hearing loss. Getting a bit of a joke when I keep having to ask people to repeat themselves. Could go through the NHS but then that needs a referral and a hospital visit then the hearing aids that they give you.

Thanks

Stock answer: what does your accountant say?
Other stock answer: you're not really an employee so that article isn't necessarily helpful

I would say that it's the same as spectacles needed for computer work, and the concensus is always not to bother claiming.

[Yorkie62]

I have the same problem. I have hearing aid in each ear due to years of riding motorcycles with no earplugs and consequently have 40% loss in the upper frequencies.

Hearing aids that correct specific frequencies are expensive, around £3k per ear iirc. Phonak Audeo, and essential if I need to speak with someone with a softly spoken higher pitched voice (female).

Sorry I can't help you with the claiming through the Ltd co bit as I paid for mine myself.

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[Yorkie62]

Hi

Has anybody here purchased a hearing aid through their limited company and reclaimed the VAT plus submitted as a business expense?

Looking at HS207 Non-taxable payments or benefits for employees (2016) - GOV.UK

"If you are a disabled employee and your employer provided you with special equipment to help you to work, such as a wheelchair or hearing aid, this exemption applied even if your private use of the equipment was significant because it was also used outside work."

I have read elsewhere that you will have to submit the cost on your P11D as a benefit in kind.

I would not classify myself as disabled but I have previously had a hearing test and I have 25% hearing loss. Getting a bit of a joke when I keep having to ask people to repeat themselves. Could go through the NHS but then that needs a referral and a hospital visit then the hearing aids that they give you.

Thanks

Why do you not classify yourself as disabled. Hearing loss is a disability. Admittedly it doesn't get you a blue badge but it is a disablity.

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[phpcontractor]

Stock answer: what does your accountant say?
Other stock answer: you're not really an employee so that article isn't necessarily helpful

I would say that it's the same as spectacles needed for computer work, and the concensus is always not to bother claiming.

I think that I am employee as that is what my tax return says and that is how I am paid.

My accountant is the next port of call . I am not certain that he will give me a definitive answer.

[Lance]

I think that I am employee as that is what my tax return says and that is how I am paid.

My accountant is the next port of call . I am not certain that he will give me a definitive answer.

Yes it is how your tax return sees you.
Yet unless you have an employment contract it's still not true.
Some places would class you as self-employed, and you're not that either.

I doubt your accountant will tell you for definite either, but he/she should be able to help you understand if claiming it represents a risk of investigation. If the accountant says you're OK and you are investigated you're far more likely to just have to pay some tax than if you ignored any advice to not do it.

[northernladuk]

Here you go.

https://www.crystalhearinguk.co.uk/w...ity-aids-1.pdf

[TheCyclingProgrammer]

Other stock answer: you're not really an employee so that article isn't necessarily helpful

As always - guidance for "employee" expenses generally applies to director's as well unless special rules for company officers are explicitly referenced.

So for expenses and benefits rule purposes, a director is treated the same as an employee.

Anyway, reading the guidance, it seems fairly clear cut:

1. Special equipment provided off the employer's premises falls under the same general rule for other equipment provided to employees off premises (e.g. like a laptop).

2. Unlike other equipment, where you have to consider the "significant personal use" rule, this does not apply to special equipment for disabled employees therefore your personal use is not irrelevant.

TLDR; it seems clear to me that if you require hearing equipment to help you do your work, it's exempt from tax and BIK and doesn't need to be reported.

As mentioned in the link NLUK posted, the entire cost may be tax-deductible for corporation tax purposes but your VAT reclaim may need to be partially restricted to account for any personal use.

[Old Greg]

The case for spectacles applies to spectacles where the prescription states For VDU use. Typically this is for an intermediate (between distance and near vision) or for a low prescription where someone has headaches but does not need specs for driving or reading. The point is that the specs are needed specifically for work and not outside of work.

I would expect that it is the same for hearing aids. If provision of a hearing aid is a reasonable adjustment so you can do a job, but you wouldn't otherwise need one, maybe there is a case. Worth contacting a relevant charity perhaps.

[Yorkie62]

As always - guidance for "employee" expenses generally applies to director's as well unless special rules for company officers are explicitly referenced.

So for expenses and benefits rule purposes, a director is treated the same as an employee.

Anyway, reading the guidance, it seems fairly clear cut:

1. Special equipment provided off the employer's premises falls under the same general rule for other equipment provided to employees off premises (e.g. like a laptop).

2. Unlike other equipment, where you have to consider the "significant personal use" rule, this does not apply to special equipment for disabled employees therefore your personal use is not irrelevant.

TLDR; it seems clear to me that if you require hearing equipment to help you do your work, it's exempt from tax and BIK and doesn't need to be reported.

As mentioned in the link NLUK posted, the entire cost may be tax-deductible for corporation tax purposes but your VAT reclaim may need to be partially restricted to account for any personal use.

Disablity equipment is VAT exempt when purchased by the disabled person. If you've ever bought a walking stick from a mobility shop , or hearing aid spares from an audioligist or online then you would know this.

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