Produced by Tolley in association with Paul Tew
  • 17 Jan 2022 11:50

The following Employment Tax guidance note Produced by Tolley in association with Paul Tew provides comprehensive and up to date tax information covering:

  • Bank charges
  • Introduction
  • Routine payment of employee’s bank charges
  • Exceptional payments
  • Reporting requirements

Bank charges

Introduction

An employer may reimburse bank charges incurred by an employee. The income tax, NIC and reporting requirements associated with reimbursement of the bank charges will depend on the reason behind their reimbursement and whether the reimbursement comes within meaning of earnings in ITEPA 2003, s 62. The tax consequences of paying such fees will depend on whether the reimbursement is a benefit to the employee or compensation for loss. It is the construct or rationale behind these payments that will determine the PAYE and reporting consequences.

All issues regarding bank charges are covered in EIM01010.

Routine payment of employee’s bank charges

If an employer routinely pays an employee’s bank charges or fees associated with a bank account as part of their remuneration package, then the amounts are to be

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