Q: We have a situation where an employer would like to employee some to utilise a piece of equipment they own.

They would like to pay them an allowance, to cover the cost of using this piece of equipment on the job. Is this non-taxable and how could you estimate the amount to pay for the allowance?

Can they only be reimbursed for the maintenance or can they pay for the use?

A: If the employee’s equipment is being used for work, then yes, an allowance would be paid for the wear and tear, and use of the equipment.

Look at how much it would cost to hire the piece of equipment and if there are any consumables used as well.