Published 27th March 2017
There are new rules where benefits are taken in place of salary, and some quite subtle changes in the way benefits are taxed.
This will affect employees and employers where the employer makes benefits available through a salary sacrifice arrangement or where there is a choice between cash allowances and benefits in kind.
The taxable benefit will be the higher of the cost to the employee (amount of salary sacrificed) and the actual cost to the employer. Pensions, childcare, cycle to work schemes and ultra-low emission vehicles are not affected by the new rule.
Existing contracts are not affected until the contract id changed or ends, or until April 2018. (April 2021 for cars, school fees and accommodation).
The newsletters on this website are believed correct at the time of publication. They may not include subsequent changes in the law. If the subject matter is of interest you should contact us to see if there is a relevant update.
Taxation is a complicated subject and is subject to change. This article is provided for general guidance only. You should only rely on advice prepared specifically for you. Neither the writer nor Landlords Tax Services Ltd can be held liable for any loss arising from any act or omission by you as a result of your understanding of this article.
Landlords Tax Services Ltd, specialises in the taxation of residential property income and gains and around half its clients are resident outside the UK. If you would like specialist help contact Maurice Patry F.C.A. at firstname.lastname@example.org or for more information visit our website at Landlords Tax Services Ltd
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. All Rights Reserved - In an article such as the one on this page we can only give brief general guidance and cannot cover all situations. This guidance may not cover all your personal circumstances and so you should not rely on it. Before taking action or not, always do your own specific research and seek appropriate professional advice which takes into account your personal circumstances, with the full facts of the case and all documents to hand. Neither Maurice Patry F.C.A. nor Landlords Tax Services Ltd can be held responsible for the consequences of any action or the consequences of deciding not to act.