1 - Income tax (Deduction, Total income, Interest, Gifts, Pension payments, Employee benefits)

Question 1

What income is paid gross?

Answer 1

• Bank and building society interest
• Interest distributions from unit trusts, OEICs, investment trusts

Question 2

Deduction of tax

Interest and annuities

Answer 2

Interest:

• *GROSS**
• interest on corporate bonds
• *NET (BR tax)**
• Interest where a company/partnership of which a company is a member, pays interest to a non-UK company/individual/partnership (unless all partners are UK companies)
• non-taxpayer/where interest falls within PSA/taxed at starting rate 0% applicable to savings income can reclaim the 20% deducted.
• Rewards paid by B&BS are not treated as savings income, and don’t benefit from the PSA

Annuities

• *Not paid wholly out of profits or gains subject to income tax**
• The payer must deduct BR where annuity not wholly paid out of profits or gains subject to income tax, and must inform HMRC and pay over the tax
• i.e. Trust income £3,000 (subject to tax) pays £5,000 annuity to beneficiary = not paid wholly out of profits subject to income tax = trust pays £4k to beneficiary, £1,000 to HMRC
• *Paid wholly out of profits or gains subject to income tax**
• The payer can deduct and retain the tax = a means of giving BR tax relief to payer where the payment is made from taxed income
• i.e. Trust income £10,000 pays £5,000 annuity to beneficiary, trust may deduct £1,000 tax and pay beneficiary £4,000. Trust doesn’t have to pay £1,000 to HMRC as such, as it is accounted for as part of its normal tax liability on the £10,000 of income.
• Most purchased life annuities are paid net of basic rate tax.

Question 3

Grossing up net payments
Where is net and gross amount used?

Answer 3

Grossing up net payments = where individuals who receive income, where BR (20%) deducted at source, must include the amount of gross income before the deduction of tax in their tax calculation…so although the net amount is entered on the tax return, the gross income is used to calculate the individual’s tax liability.

i.e. Net interest £1,000, gross interest £1,250 (i.e. 1000 / 0.8) = £250 tax deducted

Tax returns and computations
Recipients of interest and annuities paid net should include the net amount in their tax returns, although it is the gross amount used in income tax computations.

Question 4

Dividend income from a UK company

Paid net or gross?

Answer 4

Dividends received from a UK company are received as gross income

Question 5

Total income and the amount on which tax is calculated
What is net income?
What amounts have tax relief given by deductions from income?

Answer 5

Total income = the sum of the amounts of income on which the taxpayer is charged income tax for the tax year.

These amounts are calculated in accordance with the rules of ITTOIA 2005 or ITEPA 2003.

This is calculated by:

1. Calculate net income by deducting the amounts for which tax relief is given by deduction from income:
   - qualifying interest payments
   - allowable business losses
   - gifts to charities of shares and securities
   - qualifying contributions to registered occupational pension plans (for which relief cannot be given directly from employment earnings) and to retirement annuity plans (where the pension provider does not give tax relief at source)
2. Deduct the personal allowance

Question 6

What payments are tax-relieved in a different way?

Answer 6

• *Tax reducers**
• tax relief on these payments is given at a specified rate and is deducted from the taxpayer’s tax liability.
• these include the BR tax deduction for property income finance costs, investments in EIS (30%), VCTs (30%), SEIS (50%)

Certain payments are made net of BR, which gives relief to a BRT without the need for further action. HRT & ART are entitled to relief at 40% or 45%, so a tax saving of a further 20% or 25% is available. To achieve this, the payment, grossed up for BR is added to both the basic rate limit and higher rate limit for that taxpayer, thereby reducing the amount of income on which the taxpayer is liable to HR or AR tax.

The main payments on which tax relief is given in this way are:

• certain donations to charity
• contributions to pension plans where relief at source is given.

Question 7

Interest payments
What qualifying purposes are interest payments allowable deductions?
What is the max amount that can be deducted?

Answer 7

Interest payments are allowable deductions from total income if loan taken out for qualifying purposes:

• purchase of shares or to finance loans in borrower’s company
• investment in a partnership
• to buy plant and machinery for use in partnership
• payment of inheritance tax

The gross figure of interest paid in the tax year should be deducted in the tax computation.
The amount of interest + allowable business losses that can be deducted is capped at the higher of:
- £50,000; or
- 25% of person’s adjusted total income

Adjusted total income = total income + charitable donations through payroll giving - all types of pension payment
i.e. income £260,000 - pensions £30,000 = £230,000. Paid £65,000 interest.
25% £260k = £57,500

Question 8

Interest on a loan for property

Answer 8

Interest on a loan to to purchase or develop a land and buildings is not a deduction from total income, but if property is:

• Non-residential and is let = interest is an allowable deduction in the property letting accounts
• Residential and is let = tax relief for the interest given at BR deduction from tax payable
• Not let i.e. own home = no tax relief for interest.

Question 9

Allowable deductions

Share purchase and loans to companies

Answer 9

Relief is given for interest paid on a loan for purpose of acquiring shares in, or making a loan to, a close trading company that is resident within EEA (EU + Norway + Iceland + Liechtenstein)

Close company = controlled by ≤5 shareholders, or by its directors (regardless of their number)
- Relief is available if borrower has:
>5% of shares at the time of paying the interest
≤5% of the company if they work for the greater part of their time in the management or conduct of the company’s business

• A loan made to close company must be used for purpose of its business for the interest to qualify for the relief.
• Relief at borrower’s top tax rate, capped at higher of £50k or 25% of adjusted total income
• No relief available if loan used to buy shares on which EIS relief is claimed.

Question 10

Allowable deductions
Purchase of plant and machinery

Answer 10

Tax relief is available to partner who pays interest on a loan used to buy plant and machinery for use in the partnership business:

• Partner must be entitled to capital allowance on the machinery or plant - usually the case if the equipment is used in the business
• Relief is similarly available to an employee who buys machinery or plant, other than cars, for use in their employment, subject to the same capital allowances condition
• Relief is at the borrower’s top tax rate, with £50k/25% of adjusted total income cap.

Question 11

Allowable deductions

Inheritance tax

Answer 11

Relief is allowable if it is payable on a loan used to pay IHT on death

• relief is restricted to a period of 1 year from the making of the loan
• relief is at borrowers top rate, subject to £50k/ 25% adjusted total income cap
• the borrower must be a personal representative of the deceased.

Question 12

Charitable gifts
How does Gift Aid work?

Answer 12

Gift aid
- intended to encourage charitable giving by giving tax relief for donations
- the donation to the charity is treated as a payment on which the donor has already paid tax at basic rate (20%), so the charity can recover the tax deducted.
- The donor’s BR & higher rate tax limits (HR/AR) are both increased by the grossed up amount of the donation - the effect of this, gives the donor an extra 20% or 25% tax relief, depending on their marginal rate of tax = more income taxed at 20%, less at 40/45%
- the grossed up donation is an amount which, after deducting income tax at 20%, is equal to the payment made to the charity (i.e. ÷ 0.8)
- Non-taxpayers shouldn’t use Gift Aid, and donors should ensure they have a tax liability (including tax deducted at source) of at least the # deducted from donation, else would need to pay excess tax deducted from donation to HMRC
- The charity must be established in UK, EU, Norway, Iceland
- Donor does not need to be UK resident if gift is made out of income or gains subject to UK tax
- Donor must declare the gift is being made under gift aid.
- Any reciprocal benefit received by donor from charity must not exceed:
- 25% of donation for donations up to £100
- The sum of £25 + 5% of the excess donation over £100 - with a cap of £2,500
Note: These limits must be considered on an annual basis when donor makes a series of gifts.

Example
Joe (ART) makes gift aid payment £4,000 to a charity
4000 / 0.8 = £5,000 ← payment treated as this from which £1,000 has been deducted
- Charity will reclaim £1,000 directly from HMRC
- The fact he has paid the charity only £4,000 has in effect given Joe tax relief at 20% on a donation of £5,000
- As he’s ART, Joe can claim back the remaining 25% of income tax which he paid on the gross value of the donation (25% of £5,000 = £1,250) - claim back via his tax return
- The total tax saved on the donation is £1,000 + £1,250 = £2,250 (i.e. 45% of £5,000)
- In other words, he’s paid net £2,750 for a £5,000 donation (5000 x 0.55)

Question 13

Charitable gifts

How does payroll giving work?

Answer 13

Employees can make regular gifts to a charity of any amount in a tax-efficient manner through their employer’s payroll system

• employee instructs employer to make regular payments by deduction from salary to a charity or charitable clearing house
• employer deducts the payment from salary before calculating under PAYE = tax relief at highest rate
• if the amount of the payment is more than the pay on which tax deducted, relief is restricted
• no benefit to non-taxpayers using this scheme
• Donations made via payroll giving won’t show on tax return but are included in tax computation
• Scheme isn’t compulsory
• Allows employees to nominate the charity they wish to benefit
• There’s no max or min payment under payroll giving.

Question 14

Charitable gifts

How does gifts of assets work?

Answer 14

Individuals (N) who donate certain assets to charity benefit from income tax relief on the full market value of the gifts.

The relief is in addition to the CGT exemption for gifts to charity.

The assets that qualify are:

• listed shares and securities / unlisted ones dealt on recognised stock exchange, i.e. AIM
• units in authorised unit trusts / shares in OEICs
• holdings in foreign collective investment schemes
• any freehold or leasehold property provided the whole interest is given (market value on date of gift)
• gifts of pre-eminent objects to the nation (30% tax reduction of the value of the object that can be used against N’s income tax and/or CGT liabilities, spread forward over up to 5 years)

Question 15

Pension payments

What 3 ways can tax relief by given for relievable pension contributions?
What types of pensions are these for?

What is a relievable pension contribution?

Answer 15

Tax relief for relievable pension contributions is given through:

• relief at source (Personal pensions - paid net, with tax bands extended by gross contributions)
• net pay arrangement (occupational schemes - deducted from employment income)
• relief by making a claim (Retirement annuities - deducted from total income)

Relievable pension contribution = a contribution paid to a registered pension scheme by an individual member of that scheme who is a relevant UK individual, or in some cases a 3rd party on behalf of the member, i.e. parents contribute to pension scheme set up for a child.

Question 16

Pension payments

What is relevant UK earnings?
What is relevant UK individual?
Who can contribute?
What are the limits?

Answer 16

Most N <75y can make single or regular tax-relievable contributions to a personal pension.

• *Relevant UK earnings:**
• profits from UK self-employment or partnership
• earnings from a UK employment
• earnings from certain overseas crown employments that are subject to UK tax

N is a Relevant UK individual if:

• have relevant UK earnings for the year
• resident in UK at some time in the tax year
• were resident in UK at some time during previous 5 tax years and were UK resident when they joined the pension scheme
• *Who can contribute:**
• Anyone who has relevant UK earnings whatever the amount
• Relevant UK individuals with no relevant UK earnings can contribute up to £3,600/y - relief can only be given if the pension scheme operates the relief at source scheme
• *Limits:**
• Max amount on which N can claim tax relief is greater of £3,600 and the amount of N’s relevant UK earnings that are chargeable to income tax for the tax year, subject to annual allowance £40,000 (reduces by £1 for every £2 over £100k earned, with £10k floor)
• charge at N’s marginal tax rate is made
• If annual allowance not fully used in any tax year, the unused amount can be carried forwards for up to 3 years (providing they were a member of a pension scheme)
• lifetime allowance £1,073,100

There are special rules for calculating the amount of pension savings depending on the type of pension arrangement.

Question 17

Pension payments

Relief at source

Answer 17

Relief at source operates by allowing N to make relievable pension contribution after deducting a sum equal to BR (20%). The scheme administrator may then claim from HMRC a repayment of the sum deducted.

This is the most common method of giving relief for contributions other than to an occupational pension scheme.

• The payer therefore gets BR tax relief by deduction from the payments. This is true even if the payer’s tax liability is less than the tax relief on the pension payments.
  i. e. N who wants to contribute £3,600 would pay £2,880 (2880 / 0.8) & scheme administrator claims the deducted £720 from HMRC = N is credited with contribution £3,600
• HR & AR tax relief is given by extending N’s BR & HR tax limits by the amount of the gross pension payment (like gift aid) - N must claim relief either on SA tax return or separately

Question 18

Pension payments

Net pay arrangement

Answer 18

Net pay arrangement = Employees’ payments to an occupational pension scheme are usually deducted from pay before calculating tax, so the employee doesn’t have to claim tax relief on them.

• P60 will show their remuneration after deduction of the pension payments
• Relief for additional voluntary contributions (AVCs) to an employer’s scheme is usually given in the same way

Question 19

Pension payments

Relief by making a claim

Answer 19

Some providers of retirement annuity contracts don’t operate the relief at source system.

Payments are made gross and tax relief is given by deducting them from total income.

• Retirement annuity contracts are individual pension plans that started before 1 July 1988
• N can contribute up to 100% of relevant earnings
• Sometimes, other types of pension payments are made gross, i.e. if a member of an occupational scheme makes a contribution in excess of earnings for that pay period.

Question 20

Taxation of employee benefits

Answer 20

Employee benefits (fringe benefits) are an important part of any employees remuneration = any type of non-monetary compensation.

Most fringe benefits are provided not only because they are considered desirable, but because they are thought to have some tax advantages for the employee.

With certain exceptions, all employees are treated the same when it comes to the taxation of fringe benefits. Unless benefits have been payrolled, employers have to complete HMRC form P11D for each employee who has been provided with benefits or has received expense payments.

Any benefits provided to employees, their family or members of their household, by the employer or by reason of the employment, are treated as earnings of the employment, and are therefore taxable.

Question 21

Employee benefits

Cash equivalent

Answer 21

Employees are taxed on the cash equivalent of a benefit rather than on its second-hand value.

Cash equivalent = the cost to employer of providing the benefit (slightly different rules for company car/fuel for private use)

• Any contribution made by employee towards the cost is deducted from the cash equivalent
• The cost to employer of providing a benefit ‘in-house’ was the subject to dispute until clarified in tax case Pepper v Hart (1992) as the ‘marginal cost’ = the additional cost incurred in providing the benefit to the employee

Question 22

Employee benefits

Use of assets

Answer 22

Where an employee has the use of an asset, the calculation of the taxable benefit it more complicated - in particular when the asset is later given to the employee.

Employee has use of an asset (not including motor car or accommodation):
Cash equivalent = ‘annual value’ of the use of the asset + any expenses incurred by employer in maintaining the asset
Annual value = Greater of 20% of market value of asset when first provided or rental value

Asset given to employee, tax charge is generally based on the market value of the asset at the time of transfer. If asset not been used since employer acquired it, i.e. it is new, the tax charge is generally based on the cost of the employer of providing the asset.

• *Employer had use of asset before given to them outright**, tax charge on transfer usually:
• higher of market value of asset at time of transfer AND
• market value of the asset when it was first made available to the employee, less any amounts already taxed as benefits.

Question 23

Employee benefits

In-house benefits

Answer 23

Pepper v. Hart clarified tax treatment of benefits provided from within the employer’s business, i.e. in-house and not ‘bought in’, including:

• Goods & services sold in the usual course of the employer’s business, provided free or at a discount to employees
• services and facilities provided in-house
• assets used in the business and made available to an employee’s private use, and such assets if subsequently transferred to the employee.

In Pepper, the decision was that in the case of in-house benefits, the cost of the benefit to the employer is the additional or marginal cost only - a cost that depends on each employer’s particular circumstances. HMRC generally accepts that:

• goods sold at a discount don’t result in any benefit (or only a negligible benefit) provided employees pay at least the wholesale price of the goods
• where teachers pay 15% or more of a school’s usual fees, there is no net benefit
• professional services that don’t need additional staffing (i.e. legal and financial) result in a nil benefit, provided the employee meets the cost of any disbursements
• Rail or bus travel by employees on terms that don’t displace fare-paying passengers results in a nil benefit (or only a negligible benefit)

Question 24

Employee benefits

Company cars and fuel for private use

Answer 24

If a car provided to an employee, or member of their family, is available for private use, then there is a taxable benefit. The benefit is calculated as a % of the list price of the car.

There is also a taxable benefit where the fuel is provided by the employer for private motoring. The charge is a % of a set figure announced each tax year.

Calculation of the car benefit

= % of **list price** of car (% based on level of a car's CO<sub>2</sub> emissions)
List price (including accessories but not car phone or when disabled) ensures any discounts given to employer are ignored
6 Apr 2020 introduced **Worldwide Harmonised Light Vehicle Test Procedures** (WLTP):
- 0% charge applies to cars that can only be driven in zero-emission mode.

Hybrid-electric cars with CO₂ emissions:
- 1-50g/km, electric range determines benefit %

Petrol-powered (diesel non-hybrid has 4% supplement)

• 51-54g/km, 15% on or before 6 Apr 2020, 13% after
• >55g/km, 16% / 14% then increases 1% for every 5g/km (rounded down) to max 37%

Question 25

Employee benefits

Other issues involving company cars:

• Contribution towards running costs
• Second cars
• Availability
• Pool cars

Answer 25

Contribution towards running costs
If it is a condition that an employee makes a contribution to the employer for the private use of the car, the car benefit charge is reduced by the contribution made

Second cars
The car benefit charge applies to any second + subsequent cars made available to an employee (or their household)

Contribution towards capital cost
If employee makes contribution up to £5,000 towards capital cost of a car when first made available, it is deducted from list price of car before calculating the benefit (excess over £5,000 is ignored)

Availability
A car provided for an employee is regarded as available for private use unless specifically prohibited. If company car available to employee for part of year only, the car benefit charge is reduced proportionally. It is similarly reduced if the company car is incapable of being used for 30 days or more (i.e. repaired)

Pool cars
The use of a pool car is not taxed as a benefit, and any private use should only be incidental to the business use.

Question 26

Employee benefits

Free fuel for private use

Green transport

Charging electrical vehicles

Answer 26

A fuel benefit charge linked to a car’s CO₂ emissions applies where fuel is provided by the employer for a company car that is used by an employee for private mileage.

• The charge is a % of a set figure announced each tax year (21/22 £24,600)
• The % used is the same as that used for car benefit purposes (0-37%), so max benefit is £9,102
• It is reduced proportionally if the car or car fuel is only available for part of the year.
• No fuel benefit where fuel not provided, or just for business purposes, private fuel reimbursed by employee, or for electric vehicles
• The benefit is charged for the whole of the year
• The car and fuel benefits aim to cover all expenses and costs incurred by the employer on the provision of the car, except for provision of chauffeur, which may result in a further taxable benefit.

Green transport
There is no tax charge in respect of certain benefits aimed at encouraging employees to travel to work other than private car (bus, bicycle)

Workplace charging electric vehicles
No tax charge on workplace facilities provided to employees

Question 27

Employee benefits

Mileage allowances

Company vans

Answer 27

When employees use own car for:
business purpose and are reimbursed at more than the permitted rate for the expenses incurred = no tax charge

private travel and are reimbursed = taxable benefit (this includes commuting to usual place of work)

Mileage rates that can be paid free of tax and NIC:
For income tax: 45p per business mule for first 10,000 miles in the tax year, 25p thereafter
For NIC: 45p flat rate
- Motorcycles: 24p
- Bicycles: 20p
- Passengers up to 5p carried on business journeys

Company vans
Taxable benefit of £3,500 for employees provided with company van (NIL for zero-emission) + £669 where van fuel available for private journeys.
These values reduced where employee can’t use van for more than 30 days in a row or where they reimburse for the private fuel used.
This taxable benefit can be avoided if they agree not to use the van for private journeys.

Question 28

Employee benefits

Beneficial loans

Answer 28

In general, employers who receive interest-free or ‘cheap’ loans from employers are taxed on the benefit they receive from the arrangement.

• Taxable benefit is the difference between the “official rate” (2% 21/22) and the amount of interest actually paid on all loans in aggregate.
• The benefit of cheap or interest-free loans which don’t exceed £10,000 is not taxable.
• If employee’s loan is released or written off = taxable benefit.
• Interest on certain loans qualifies for tax relief (partnership/shares in close company)

Question 29

Employee benefits

Living accommodation
Exemptions
Furnished accommodation
Services

Answer 29

Employees may be assessed on the benefit of occupying accommodation provided by an employer:

• *Unfurnished**
• Assessment based in first instance on the greater of the annual value (defined by the gross rateable value at last rating valuation) or the rent actually paid by the employer
• If accommodation owned by employer and the cost was more than £75,000, there is an additional charge on the excess, multiplied by the official rate of interest at the start of the tax year (2.00% for 21/22)
• If property was acquired by the employer more than six years before being first provided to employee, charge = official rate x excess on 75k on market price

Exemptions
1- If accommodation necessary for the proper performance of employee’s duties (i.e. caretaker)
2- If accommodation helps employee to perform their duties better, and the provision is customary - i.e. publican
- There is a special threat to the employee’s security
NOTE: Directors who own >5% company share can’t claim under 1 or 2.

Furnished
If employer provides furniture and equipment, additional taxable benefit measured as 20% of the market value of the furniture and equipment arises.

Services
Employees are taxed as a benefit, on expenditure met by the employer, such as repairs, heating, cleaning, lighting and maintenance.

Question 30

Employee benefits
Other taxable benefits :
- Cash vouchers
- Non-cash vouchers
- Credit tokens
- Employee Liabilities
- Medical insurance

Answer 30

Cash vouchers
Includes vouchers, stamps, similar documents capable of being exchanged into cash. Treated as earnings

Non-cash vouchers
Can be exchanged for goods/services. EE taxed on an amount = the cost of the voucher incurred by the ER, less amounts made good by the EE. Some types, i.e. childcare vouchers, are tax-free within limits.

• *Credit tokens**
  i. e. company credit card from ER to EE. EE can product card to a third party in exchange for money/G/S then paid by employer. EE who use credit token treated as having received a benefit equal to the cost incurred by ER. EE who use CC are assessable to tax on the date they use the card, not when ER pays the bill.

Employee liabilities
Where ER takes over EE liability to meet costs, i.e. rent, school, garage bills, accountancy, professional fees, the benefit is generally fully taxable. Even if a motoring conviction arises from a business trip, defending it is regarded as a personal expense.

Medical insurance
This is a taxable benefit. When ER pays premium for a group of EE, it is apportioned between them on a reasonable basis.
- The cost of medical treatment itself, paid by ER, is taxable except when it is necessary for EE working abroad. There is a £500 annual exemption.
- The cost of medical examination and screening met by an ER and carried out at the ER’s request is not taxable.

Question 31

Employer benefits

Benefits wholly or largely exempt from tax

GIP
Meals
Mobiles
Long service
Suggestion schemes

Answer 31

Group income protection (GIP) - the insurance company pays an agreed amount of money to employer, after a specified deferred period when EE becomes ill = taxable as a trading receipt, so ER deducts tax & NICs before paying net amount to EE as sick pay.
Premiums paid by employer usually allowable deduction in calculating profits chargeable to corporation tax (not for directors with more than 20% shares in the company)

Provision of meals - low-cost or free canteen/dining facilities are not taxable, provided some form of facility is available for staff generally and provided EE has not sacrificed salary in exchange for the benefit of subsidised meals. Provision of tea/coffee exempt, but provision of lunch vouchers to obtain drink & food is taxable.

Mobile phones - One mobile phone is tax exempt, more are taxable.

Long service awards - 20 years or more, provided not more than £50 for each year of service, and no similar award has been made to same individual within previous 10 years. Long service awards paid in cash are taxed as normal earnings under PAYE

Suggestion schemes - encouragement awards (£25 or less) can be made without tax consequences for suggestions that have some merit, provided there is a formal suggestion scheme, and suggestion is outside scope of EE’s usual duties. Also, larger awards up to £5,000 are not taxed if the suggestion is implemented; and award not more than 50% of net financial benefit of suggestion to ER in first year, or 10% of net benefit over 5 years.

Question 32

Employer benefits

Benefits wholly or largely exempt from tax

Work-related training
Relocation and removal expenses
Home-working
Workplace nurseries
Liability insurance
Pension advice
Coronavirus antigen tests
Trivial benefits

Answer 32

Work-related training - where EE is about to leave or has left in past year, no tax is charged if ER pays EE to attend outplacement counselling an retraining to help EE get another job. First aid and health and safety training is also exempt

Relocation and removal expenses - when EE required to move to take new job, or moved by ER in existing job. Tax free up to £8,000

Home-working - Up to £6.00 per week can be paid without need for supporting evidence. Higher amounts can be paid tax-free if supporting evidence is provided that they payments are wholly in respect of additional household expenses incurred by employee in carrying out duties at home.

Workplace nurseries - facility must not be provided primarily for educational purposes (i.e. nursery schools) and ER should participate in financing and arranging the provision. The care can’t be provided in premises mainly used as a private home.
ER can provide EE with CCV up to £55/week (less for HR/AR) - NOTE- no longer available to new entrants, as now replaced by tax-free childcare scheme.

Liability insurance - Where ER pay for indemnity/liability insurance for directors or EE = not taxable benefit. If directors/ER pay = they get tax relief. Same treatment applies to payments to meet work-related liabilities, such as legal costs (payments can be made up to 6 years after the end of the year in which the employment ends)

Pension advice - Tax exemption available to cover the first £500 worth of pension advice

Coronavirus antigen tests - No taxable benefit

Trivial benefits - those that don’t cost ER more than £50/EE are not taxable.