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In September 2009, the Prime Minister, Gordon Brown, announced that the tax exemption for childcare vouchers would be phased out from 2011. Following widespread dissent, this decision was reversed in December 2009 and, instead, it was announced that, still from April 2011, the tax relief on childcare vouchers would be restricted to the basic rate of tax.
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Posted March 10th, 2010 | 2 Comments »
Section 317 of the Income Tax (Earnings and Pensions) Act 2003 provides a tax exemption for the provision of free or subsidised meals provided for employees in a canteen or on the employer’s business premises. The 2009 Pre-Budget Report announced that the legislation would be changed to prevent this exemption being used in conjunction with salary sacrifice schemes or flexible benefits schemes. The restriction will apply from April 2011.
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Posted February 11th, 2010 | No Comments »
Section 243 of the Income Tax (Earnings and Pensions) Act 2003 provides exemption from income tax on the provision of financial or other support for a public transport road service. The exemption, which also applies to National Insurance contributions, allows an employer to pay subsidies to a bus company in order to
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Posted December 23rd, 2009 | No Comments »
Section 317 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) provides an exemption from tax under the employment income rules whereby an employer can provide the benefit of free or subsidised meals in a canteen or on its business premises, subject to certain conditions.
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Posted December 18th, 2009 | No Comments »
Sections 270A and 318A of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) provide limited tax exemptions for the provision of childcare vouchers and employer-supported childcare. One of the conditions that must be met in order for these exemptions to apply is that the childcare must be “qualifying child care”. The definitions of “qualifying child care” are complex and are different for each country of the UK. Equivalent definitions are also used to determine entitlement to tax credits.
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Posted November 4th, 2009 | No Comments »
Regulations made in 2007 introduced a formal tax exemption covering the provision of health screenings and medical check-ups on the condition that they are made generally available to all employees. They were introduced by means of an addition to the Income Tax (Exemption of Minor Benefits) Regulations 2002. The tax exemption provided for all of the minor benefits included in those regulations is conditional on them being generally available to all of an employer’s employees.
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Posted March 30th, 2009 | No Comments »
If an employer pays an employee’s liabilities arising out of legal action or provides indemnity insurance against such liabilities, the employer’s costs are a taxable benefit to the employee and must be reported on form P11D. However, where the liability arises out of the employment, for example, because the employee is obliged to pay it as holder of the employment, the employee may make a business deduction claim to offset some or all of the tax charge arising from the benefit being reported on form P11D (unless they arise in respect of criminal acts). These provisions are to be found in sections 346 to 348 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) and, in respect of employees who have left the employment, in sections 555 to 559.
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Posted January 26th, 2009 | No Comments »
In a recent update to the Employment Income Manual (EIM), HMRC provides clarification on the tax status of welfare counselling services provided by means of Employee Assistance Programmes.
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Posted January 12th, 2009 | No Comments »
HMRC has reissued Employer Helpbook E18 How to help your employees with childcare. The booklet provides guidance on the tax and NICs treatment of childcare facilities provided by employers, i.e. in the provision of workplace nurseries, childcare vouchers, and directly contracted childcare. It also reflects the changes to the definition of “qualifying child care” that were made to the tax legislation in September 2008.
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Posted December 22nd, 2008 | No Comments »
HMRC has reissued online booklet IR115 Paying for childcare – Getting help from your employer. The booklet explains the tax relief provisions as they relate to childcare facilities provided by employers, i.e. in the provision of workplace nurseries, childcare vouchers, and directly contracted childcare. It also reflects the changes to the definition of “qualifying child care” that were made to the tax legislation in September 2008.
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Posted December 14th, 2008 | No Comments »
