benefits in kind

Benefits in kind are assessed on all directors and employees whose salary and benefits combined are £8,500 or more.

Remuneration by way of benefits is often attractive to employees, especially if they are paying the higher or additional rates of income tax, because the benefit may either be tax free or subject to less tax.

A benefit that is not taxable is not automatically exempt from national insurance contributions (NICs).

An employer is required to complete form P11D in respect of each employee earning £8,500 or more (including benefits) and for most directors. Form P9D is required to record taxable benefits received by other employees. Benefits which are treated as pay for NIC purposes must be included on the deductions working sheet column 1A 'earnings on which employee's contributions payable'. (This should not include benefits liable to Class 1A NIC). Comprehensive records should be kept in relation to all benefits and expenses payments.

taxation of company cars

The cost of providing a company car scheme is steadily increasing, so it is essential that in order to retain the most tax efficient benefit, it is essential that you understand the features of your current position.


Tax free mobile phones for businesses

Mobile phones are currently one of the most popular tax free benefits employers can provide to their employees. However, many company owners are not meeting the conditions HMRC has put in place to qualify for this tax free exemption.