On February 22, 2016 the HM Revenue & Customs published the 2016 version of its tax guide “Expenses and benefits”. The aim of the guide is to explain the tax law relating to expenses payments and benefits received by directors and/or employees.

 

The tax guide is 133 pages long and discusses a.o. the following subjects:

·        Legal background

·        Exemption for paid or reimbursed expenses (previously dispensations)

·        Tax treatment of expenses payments

·        Taxable benefits and facilities

·        Non-taxable payments and benefits

·        Valuation of benefits

·        Deductions for expenses

·        Travelling and subsistence expenses

·        Employees engaged on international work

·        Expenses for spouse accompanying employee on business trips

·        Cars and vans available for private use – when a benefit charge is incurred

·        Calculating the car benefit charge

·        Fuel provided for company cars and vans

·        Vans available for private use

·        Pooled cars or vans

·        Mileage payments and passenger payments

·        Beneficial loan arrangements

·        Scholarships

·        Tax not deducted from remuneration paid to directors

·        Entertaining expenses

·        Provision of living accommodation

·        Mobile phones and BlackBerrys

·        Employment related securities and arrangements

·        Procedures to be followed by employer and employee

·        Guidance on completion of forms P11D

·        Remuneration in non-cash form, for example, payments by intermediaries

·        Non-cash benefits in connection with termination of employment or from employer-financed retirement benefit schemes

 

 

Furthermore the tax guide contains the following appendices:

·        Appendix 1 Car benefit – examples of calculations

·        Appendix 2 Car benefit – the appropriate percentage

·        Appendix 3 Mileage Allowance Payments

·        Appendix 4 Beneficial loan arrangements

·        Appendix 5 ‘Qualifying loans’

·        Appendix 6 Taxation of beneficial loan arrangements

·        Appendix 7 Relocation expenses

·        Appendix 8 Incidental overnight expenses

·        Appendix 9 Work-related training

·        Appendix 10 Self Assessment – expenses and benefits

·        Appendix 11 Employer-supported Childcare

 

Click here to be forwarded to the tax guide “480(2016) Expenses and benefits” as available on GOV.UK, which will open in a new window.

 

 

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