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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 »
In September 2008, changes were made by Regulations to the definition of “qualifying child care” for the purposes of the limited tax exemption for employer-contracted child care and the provision of childcare vouchers. For the tax exemption to apply, it is critical that the child care contracted by employers or for which childcare vouchers may be used meets the definition of “qualifying child care”.
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Posted October 27th, 2008 | No Comments »
Last week’s news item on this subject described the changes that have been made to the definition of “qualifying child care” for the purposes of the limited tax exemption for employer-contracted child care and the provision of childcare vouchers. We made reference to HMRC’s booklet E18 How to help your employees with childcare as a source of guidance on what is and is not “qualifying child care”.
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Posted August 31st, 2008 | No Comments »
Where the qualifying conditions are met, employers are able to provide childcare benefits that enjoy full or partial tax exemption, namely
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Posted August 25th, 2008 | No Comments »
HMRC approves professional bodies that meet the statutory criteria so that individuals can obtain tax relief on their annual subscriptions. Employers may also obtain a dispensation to avoid the need to report subscriptions they pay on behalf of employees.
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Posted July 7th, 2008 | No Comments »
