§ Mr. BreedTo ask the Secretary of State for Education and Employment (1) if the £500 subsidy for teachers purchasing computer equipment will be liable for income tax; [115565]
(2) if the grant which teachers can claim towards computer purchase, as part of the "Computer for Teachers" initiative, is taxable as a benefit in kind. [115790]
§ Mr. WillsThe subsidy is an addition to income over and above salary, so income tax and national insurance contributions are payable. However, the DfEE has made arrangements with the Inland Revenue for these liabilities to be met centrally. No liability will fall on individual teachers, and they will not have to include the subsidy in any income tax return.