The following Employment Tax guidance note Produced by Tolley in association with Paul Tew provides comprehensive and up to date tax information covering:
Welfare counselling services, also referred to as Employee Assistance Programmes (EAP), include a range of facilities or treatments available for the benefit of employees. These services have been increasingly offered by employers to help employees in times of difficulty. The provision by an employer of counselling facilities to an employee usually represents a taxable benefit. However, in certain circumstances, welfare counselling provided by an employer for their employees is exempt from income tax.
An income tax exemption to cover certain minor benefits is set out in ITEPA 2003, s 210. The statutory tax exemption for welfare counselling is conditional on the benefit being made available to the employer’s employees on generally similar terms, ie a benefit will not qualify for an exemption where it is offered to selected employees only.
There is no legislative intention that all conceivable types of welfare counselling should be exempted from tax. The type of issues the exemption is intended to cover includes:
stress or ill-health
problems at work (including conduct and disciplinary matters)
alcohol and other drug dependency
harassment and bullying
personal relationship difficulties
All the component parts of a welfare counselling scheme need to be covered by the exemption in order for the entire scheme to be tax exempt. From 6 April 2020, counselling may include services which are also medical treatment such as CBT (cognitive behavioural therapy)
**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
IntroductionA company that is not resident in the UK will only be subject to UK corporation tax if it carries on a trade in the UK through a permanent establishment. Where it does so, it will be subject to UK corporation tax on all profits that are attributable to the UK permanent establishment.
The transactions in securities (TiS) legislation is anti-avoidance legislation aimed at situations where close company shareholders have engineered a disposal of shares to obtain a beneficial capital gains tax (CGT) rate, ie avoid income tax, on specified transactions.The targeted anti-avoidance
This guidance note provides an overview of the partial exemption de minimis rules. This note should be read in conjunction with the Partial exemption overview guidance note. If a business incurs an insignificant amount of input tax which is associated with exempt supplies (exempt input tax), it may
Current year relief and carry back lossesCurrent year relief for trading lossesTrading losses can be offset against total profits of the same period. Total profits covers, for example, chargeable gains or non-exempt dividends.The maximum claim for relief is the lower of the available loss or the