Benefit In kind Flashcards
How are in house employee benefits assessed?
The cash equivalent of the additional cost incurred by the employer.
Which four in house employee benefits are not taxed?
(1) Goods sold at a discount if employee pays at least the wholesale price.
(2) Teachers paying 15% or more of normal fees.
(3) Services that do not require additional staff.
(4) Public transport that does not disrupt fare paying passengers.
How are you taxed when using an employer’s asset?
20% of the market value at the time it was given, plus maintenance costs.
How is employee fuel for private use taxed?
See tax tables.
How is employee green transport taxed?
Methods of travelling to work other than by car are not taxed.
*Include work buses and subsidies,electric charging points.
How are employee loans taxed?
(1) Difference between 2.5% and rate paid.
(2) loans under £10,000 not taxable, although loans above this figure whole amount is taxed.
How is accommodation provided by an employer taxed
(1) Rentable value plus if it cost the employer more than £75k , 2.5% is charged on the excess.
(3) Exempt if needed to perform duties, for example a caretaker.
Employee vouchers and credit cards, provided by an employer are generally taxable with one exception, which is?
Child care vouchers up to £55 per week.
Are employee liabilities paid by employer i.e. subscriptions, bills, fees, fines taxable?
Yes
Are medical examinations / screening carried out at employers request taxable?
No
Is employee group IPP taxed?
No
Are subsidised employee canteen and Xmas meals taxed?
No
Are employee mobile phones taxed?
1 per employee not taxed, excludes tablets.
Are employee rewards from formal suggestion schemes taxed?
No, up to £5,000
Is employee work related training taxed
No
What is the maximum untaxed employee relocation costs?
£8,000
Additional household costs incurred by an employee working from home are not taxed up to what amount, unless additional evidence is provided?
£4 per week.
Are employee workplace nurseries taxed?
No but must not be used for Education.
Which employee long service awards are not taxed?
If for at least 20 years service @ £50 per year of service, if no other award in previous ten years.
*Cash awards are subject to PAYE
Is employee pension’s advice taxed?
No, for first £500 p.a.
Are employee trivial benefits taxed?
No, if under £50.
Are indemnity / liability insurance and work related legal Costs taxed?
No and if employee pays they get tax relief.
Are employees taxed on readily convertible assets easily turned into cash such as shares taxed?
Yes
Are employee pool cars taxed?
No, if used for business only.
Are scholarships taxed?
No, with some exceptions.
