The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
The Class of NIC charged in respect of most benefits in kind is Class 1A, but that liability only arises if a benefit is chargeable to tax. This means that if a benefit is exempt from tax, it is also exempt from Class 1A NICs.
The Non-taxable benefits guidance note includes a list of the main exemptions from tax for non-cash benefits. Any item covered by one of those exemptions is also exempt from Class 1A NICs.
As from 6 April 2016, this includes items that come within the general exemption for expenses and benefits that are matched by a deduction that would otherwise be allowable to the employee (see the Expenses and benefits matched by allowable deductions guidance note).
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login