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Summary of non-taxable benefits-in-kind

15 September 15 | By: Jas Jhooty

tax free

This week’s article provides a comprehensive summary of the benefits which are not taxable on any employee. More information can be found by clicking on the relevant links that are provided in instances where we have previously published articles on that kind of benefit.

Subsistence

Meals and drinks
Provided to all employees on similar terms. Meals made available by an employer, who is not the employee’s own employer, are also exempt.

Small and seasonal gifts
Being made generally available to all employees on similar terms such as a Christmas bottle of wine, flowers on birthdays, and so on.

Homeworking allowance
Up to £208 p.a. automatically exempt. Further amounts possible (click here for more details).

Overseas
Board and lodging outside the UK may be exempt up to certain limits (click here for more details).

Travel

Workplace parking space
For cars, vans, motorbikes and bicycles.

Mileage allowances
If within certain limits, which depend on mileage.

Free transport

  • Travel, accommodation and subsistence provided during a public transport strike (click here for more information)
  • Employer-subsidised public bus services
  • Work bus provided for journey between home and workplace, including minibuses with at least nine seats
  • Travel by taxi between workplace and home for occasional late night working (9pm or later, when no public transport available) if total number of late nights is less than 60 in a tax year
  • Appropriate records must be kept
  • Provision of alternative transport when expected car sharing arrangements are not available
  • Travel from home to workplace for disabled employees

Private use of emergency vehicle
Provided only used for travel to and from home (click here for more information).

Cycling
Cycles and related safety equipment made available to all employees, and used mainly for commuting and/or certain short journeys between work and local amenities. Private or family use does not disqualify the bicycle provided it is incidental to the main purpose.

Use of a heavy goods vehicle
Exceeding 3,500 kg fully laden and mainly used for business purposes.

Training and counselling

Work-related training
Includes retraining programmes on redundancy.

Scholarships
Not received by reason of employment.

Welfare counselling

  • Made available to all employees on similar terms
  • Not relating to finance (other than debt), tax, legal issues, or leisure

Pensions advice
External advice paid for by the employer up to £150 p.a.

Provision of equipment

Any work equipment and services
Where private use is not significant.

Provision of single mobile phone
All private use exempt unless employer pays bill in employee’s name.

Medical costs

Medical checks
Health screenings and medical check-ups (click here for more information).

Overseas medical costs
Medical insurance and treatment during foreign visits where performing employment duties .

Eye tests and corrective glasses
Where employee uses VDU, and provision of test and glasses is required by Health and Safety regulations.

Miscellaneous

Childcare

  • Workplace facilities exempt
  • Weekly allowance per employee per week of direct nursery payment/voucher exempt (click here for more information)

Parties and functions

  • Cost up to £150 per head exempt (click here for more information)
  • Event must be available to employees generally

Removal expenses
Up to £8,000 exempt (click here for more information).
Event must be available to employees generally.

Job-related accommodation
Where necessary, or for better performance of duties, or for security reasons.

Personal equipment for disabled individuals
Provision of equipment and services to enable duties of employment to be performed.

Long-service awards
For at least 20 years of service and not cash.

Sports facilities
Available to all employees but not to general public. Facilities also made available by an employer, who is not the employee’s own employer, are also exempt.

Staff suggestion schemes
Open to all employees on equal terms (click here for more information).

Entertaining and gifts from third parties
Cost of gift to donor is £250 or less.

Goods provided at a discount
Provided amount paid by employee is more than the cost of the goods incurred by the employer (click here for more information).

Fees relating to monitoring schemes
Reimbursement by the employer of registration fees for the Protection of Vulnerable Groups Scheme (PVGS) in Scotland.

How emTax can help

We hope you find the above list to be useful. If you require any further advice about any particular non-taxable benefit, please do not hesitate to contact us.

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