How might non-cash income and benefits be taxed?

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

The charge to tax on employment income specifically includes not only cash payments but also ‘any gratuity or other profit or incidental benefit of any kind obtained by the employee if it is money or money’s worth, or anything else that constitutes an emolument of the employment’. The definition of benefit is very wide and covers items provided for/to the employee and for their family / household.

Types of non-cash earnings with a different treatment

There are some types of non-cash earnings which have special treatment which are outside the scope of this note. This includes the following items:

•
non-cash earnings provided through a third party rather than the employer may be subject to the ‘disguised remuneration’ rules. See the Disguised remuneration ― overview guidance note
•
employers may offer employees shares or share options. See the guidance notes on share schemes (see the Comparison of share schemes guidance note as a starting point)
•
employers may make contributions to pension schemes on behalf of their employees. See the guidance notes on pension

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Value Added Tax

Exporting goods ― proof of export

Exporting goods ― proof of exportIn addition to the requirements laid down in the Exporting goods ― overview guidance note, businesses intending to zero-rate exported goods must hold satisfactory evidence that the goods have been delivered to a destination outside of the UK. If satisfactory evidence

15 Dec 2020 14:02 | Produced by Tolley Read more

Corporation Tax

Foreign exchange issues

Foreign exchange issuesOverview of foreign exchange provisionsForeign exchange (FX) movements are generally taxed following the rules applicable to the underlying income, expenditure, asset or liability on which they arise, broadly as follows:Capital assetsOn a realisation basis (ie on disposal)

14 Jul 2020 11:44 | Produced by Tolley Read more

Employment Tax

Ministers of religion

Ministers of religionMost ministers of religion or members of the clergy are either office-holders or employees and so their earnings are taxable under ITEPA 2003 as employment income and are subject to Class 1 National Insurance.For the purposes of the tax system, a minister does not have to belong

14 Jul 2020 12:14 | Produced by Tolley Read more

UU��ֱ��