The following Employment Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
If an employer lends an asset (ie the employer retains ownership) to one of its employees for their private use, this gives rise to a taxable benefit chargeable to income tax as employment income. The provision of company cars, company vans and living accommodation have specific rules and so are taxed under separate provisions. Please note that for PAYE purposes, the word employee includes directors.
See the Company cars, Company vans and Living accommodation guidance notes for details of how to calculate the cash equivalent of these benefits.
For 2017/18 onwards, the trigger for a benefit charge to arise is the asset being made available to the employee (or their family or household) for private use. Previously, the legislation used the phrase “placed at the disposal of or is used by...” and so was arguably less widely drawn.
It has always been HMRC’s view that the possibility of private use (rather than actual private use) was sufficient to trigger a benefit in kind charge under these rules. This is put beyond doubt with effect from the 2017/18 tax year via the insertion of new provisions which:
define when the asset can be treated as unavailable (see below)
Assets which are specifically exempt and can be used by the employee tax-free are listed later in this note.
If the asset is provided to a lower-paid minister of religion (earnings of less than £8,500 per year including cash equivalent of benefits), the benefit is not chargeable to tax. See the Employment income guidance note. For tax years prior to 2016/17, this exemption applied more widely to all lower paid employees who were not directors. See EIM20100.
In September 2010, HMRC issued the Expenses and benefits from employment toolkit, which is a guide for employers
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
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
IntroductionTax equalisation is widely used by multi-national companies or group moving employees from one country to another. It is not a statutory concept but is an arrangement between an employer and employee.The idea behind tax equalisation is that an employee accepting an assignment somewhere
Personal representatives are responsible for finalising the deceased’s tax affairs. They must file outstanding tax returns and claim any repayments due.For many estates where the deceased’s tax was deducted under PAYE on pensions or employment, a refund is likely to arise because the deceased is
Universal credit is a non-taxable benefit that is administered by the Department of Work and Pensions (DWP) and is available throughout the UK. It is available to individuals on low incomes whether they are in work, unemployed or self-employed. It is designed as a replacement for several ‘legacy
Close companies ― overviewMeaning of close companyThe tax rules for close companies are intended to address those companies that are closely controlled (ie by the owners and their families) and therefore could be used to manipulate the tax position of its activities and its investors. Therefore,