The following Employment Tax guidance note Produced by Tolley in association with Robert Woodward provides comprehensive and up to date tax information covering:
Since 1 January 2012, all new salary sacrifices where the underlying benefit provided is liable to VAT must at least equal the VAT-inclusive cost of the benefit, otherwise the employer cannot claim the input VAT.
This does not apply to all benefits as some are VAT-exclusive (eg pensions), or are specifically excluded from these provisions (eg company cars). In addition, not all employers can claim input VAT due to the services / goods they provide.
The background to the change followed the ruling by the European Court of Justice in the case brought by HMRC against Astra Zeneca. In short, the European Court of Justice decided that the supply of retail vouchers to employees will be considered to be a supply for VAT purposes. This means that, where employers have recovered the VAT they have incurred on vouchers supplied to em
**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
The basic rule is that all benefits provided to an employee by reason of their employment are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax.ExemptionsThe main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4).Below is an
Time for paymentTwo statutory rules apply on death:•tax is ‘due’ six months after the end of the month of death and carries interest from the ‘due’ date until paidThere is a possibility of payment by instalments, but this applies to certain types of property only ― see the ‘Availability of
Expenditure of a capital nature is not allowed as a deduction when calculating trading profits. Expenditure of a revenue nature is allowable, provided there is no specific statutory rule prohibiting a deduction and the expenditure also satisfies the wholly and exclusively test. See the Wholly and
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.