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 information contained in this newsletter is believed to be correct at the time of publication. The content of this newsletter is intended to be a brief summary of the principal points of the legislation or proposed legislation only, and it is provided for general guidance only. It may not take into account subsequent changes in the law and of necessity it omits much detail. Taxation is a complicated subject and is subject to change. 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. If the subject matter is of interest you should contact us to see if there is a relevant update, and to take professional advice which takes into account your circumstances.
Landlords Tax Services Ltd, specialises in the taxation of residential property income and gains and more than half its clients are resident outside the UK. If you would like specialist help contact Maurice Patry F.C.A .at email@example.com or for more information visit our website at Landlords Tax Services Ltd.
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