Giving employees the tools they need to do their jobs effectively is a timeless business requirement. Whether a company has standard lists of equipment and resources for different grades and functions, which it should to make onboarding easier, most businesses could produce such lists without much difficulty.
There are, however, tax considerations, particularly corporation tax and VAT. Thankfully, Federal Tax Authority Decision No 17 of 2026 has helpfully brought together answers to many of the questions businesses might have.
There are five main sections, starting with transport provided for staff.
It's critical that employees are not charged for the service and that transport is provided only between their homes and workplaces. Could there be a collection point for several employees, provided it is a reasonable distance from their homes? I would imagine so.
Cash payments instead of transport cannot be offered, and there should be no identifiable non-business benefit. Could one employee who fails either test affect the entire arrangement? The decision says nothing about separating qualifying and non-qualifying cases. Best not be the person who tests the rules.
What about pooling transport between two neighbouring companies? If the company providing the service changes according to a weekly schedule, would that complicate matters?
A strict interpretation would require whichever company provides the service to invoice its commercial neighbour. I don't see how this can be avoided. Anything more complicated might best be outsourced for simplicity.
Next is the provision of food and beverages. This is permissible where employees live so remotely that returning home is impractical. What constitutes remote is not defined, although I would interpret it as being unable to reach home within a reasonable time, given an individual's circumstances.
This raises the possibility that only a small proportion of the workforce might qualify. No guidance has been provided on whether a minimum number of employees must meet the conditions.
The provision must be linked to an employee's role and circumstances, including their workplace or residence.
Suitable facilities should not be available at their accommodation or workplace, nor should local food outlets be reasonably accessible. Again, cash payments instead of food and beverages should not be an option.
Moving on to company-provided accommodation, this must be an operational necessity. Perhaps the work site is in the Empty Quarter, 100 miles (160km) from the nearest town. Difficult access could make it reasonable to accommodate employees on or near the site.
Accommodation and communication
Accommodation should be suitable but not luxurious. No swimming pools, expansive manicured gardens, extensive household staff or additional reception rooms.
The rules for onboarding new employees are a little more relaxed. Accommodation can be provided for up to 30 days, and the expense claimed, provided it is not ostentatious. Notably, the decision does not exclude employees who have already been living in the country, regardless of how long they have been here.
I recall benefiting from such an arrangement when starting a role in the late 2000s. I believe there were two reasons for it. First, treating new starters differently would have been inconvenient. Second, with international personnel flying in and out of the region, putting everyone in the same hotel helped employees become familiar with the business and encouraged social interaction.
Mobile phones are another area where guidance already existed, and the new decision restates and expands on it.
Devices must be required for work and used only for business purposes. Each invoice should be reviewed, with personal calls identified and excluded from VAT or corporation tax claims.
A company may decide to absorb the non-deductible cost rather than introduce an internal system for recovering personal expenses. Sometimes the administrative cost can outweigh the value of recovering small amounts spent on company assets.
The new requirement is for a formal standard operating policy. This must be communicated to everyone affected, reviewed periodically, updated when necessary and demonstrably enforced.
For businesses without standard operating procedures, this would be a good place to start.
If I could, as an accountant, give human resources departments one task, it would be to map every business process and identify the roles and individuals responsible for each. This would strengthen both control and continuity.
I can think of few projects more valuable when reassessing internal efficiency, particularly in an AI-driven world where automation is the mot du jour.
Lastly comes parking, which is subject to the same requirements as mobile phones.