Benefits in Kind
Broadly, benefits may be defined as everything, not in the form of money, which an employee (and members of his family or household) receives from the employer or from other persons, by virtue of the employee's job. A simple description would be "perks of the job".
The law tries to ensure that employees are treated evenly, no matter in what form they receive "payment".
Employees (including directors of companies) are affected because they are ultimately responsible for tax arising on any benefits they receive. It is also the responsibility of each employee to ensure that all benefits received, that are not included in the ETI schedules, are declared separately on his income tax returns. The reason for this requirement is that an employee may receive taxable benefits of which his employer may be unaware, e.g. a gift from a customer.
For further information, see the pdfs below.
Document downloadsBenefits in Kind Explanatory Guide 2012 What are benefits in kind and how are they taxed? Benefits in Kind Statements of Practice Further clarification on benefits in kind
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