The following Employment Tax guidance note Produced by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:
The provision of a club membership by an employer to an employee almost always gives rise to a taxable benefit. How the membership is paid determines the tax and NIC treatment. The rare circumstance in which there is no taxable benefit is highlighted below.
As there is almost always some personal element to a club membership or subscription, it almost always gives rise to a taxable benefit. The cost of the membership fees is the amount subject to tax and NIC.
For example, if an employer pays for a golf club’s green fees for a member of staff, the individual can use the club for his own leisure purposes in addition to any business-related use (eg client entertainment).
How the amount is paid or reimbursed has an impact on the tax and reporting requirements, which are outlined below.
HMRC guidance is at EIM21696.
The leading case in this area is Utitz, in
**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
‘Hold-over’ relief allows for the deferral of a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset for the transferee for the purpose of a future disposal is reduced by an amount equal to the gain
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.When dealing with someone working from home, it is important to remind him that
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.