Benefits in Kind
Benefits in Kind - an Explanatory Guide
Contents:
- 1 - What are benefits and how are they taxed?
- 2 - What legislation has been introduced?
- 3 - Who is affected by this Law?
- 4 - What about the people who control companies - are they affected?
- 5 - What benefits are exempted?
- 6 - Which benefits are taxable?
- 7 - How is the benefit valued for tax purposes?
- 8 - What do "market value", "cost to the employer" and "cost to the provider" mean in practical terms?
- 9 - Once the value of the benefit is calculated, is that the amount the employee will have to pay in income tax?
- 10 - Do benefits have to be passed through the ETI Scheme?
- 11 - Can the employer pay the tax due on the benefit in kind for the employee?
- 12 - What if the employee receives a benefit but receives it only for part of a year?
- 13 - What if the employee reimburses the employer for part of the benefit provided?
- FACT SHEET 1 - Benefits from motor vehicles provided by employers for use by employees
- FACT SHEET 2 - Benefits from the provision of accommodation or a dwelling or land
- Statements of Practice & Extra Statutory Concessions
1 - What are benefits and how are they taxed?
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" and various examples are given in section 6 on page 3 of this guide.
The law tries to ensure that employees are treated evenly, no matter in what form they receive "payment".
- Benefits in Kind Statements of Practice
- Letter issued (Oct 2008) to employers who currently submit benefit in kind returns
- Letter issued (Oct 2008) to software providers