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8
BENEFITS IN KIND
The law regarding the taxation of beneits
in kind is being clariied with effect from
6 April 2016.
The concept of ‘fair bargain’ only applies
to general taxable beneits where the
taxable amount is based on the cost to the
employer of providing the beneit.
If an employee receives goods or services
from their employer at the same cost as a
member of the public there is no beneit
in kind.
The concept of ‘fair bargain’ does not
apply to the taxation of certain beneits in
kind which have speciic charging rules,
such as beneicial loans, accommodation
and company cars.
INCOME FROM SPORTING
TESTIMONIALS
All income received by an employee from
a sporting testimonial or beneit match will
be chargeable to income tax and NICs.
There will be a one-off exemption of
£100,000 of the income received from
events held during a single testimonial or
testimonial year.
If the proceeds exceed £100,000 PAYE will
need to be applied.
The exemption will not be available if the
right to the testimonial is contractual
or customary.
The new rules will apply for income
received from testimonial events held on
or after 6 April 2017 where the testimonial
was awarded on or after 25 November
2015. If the testimonial was awarded
before 25 November 2015 then existing
arrangements will apply.
Contact us to discuss
your personal inances
PERSONAL
ALLOWANCE
£11,500
FROM 2017/18