CRW Accountants

The Mews, Queen Street
Colyton, Devon, EX24 6JU
This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel: 01297 553286

Search News


Benefits provided by someone other than their employer

Source: HM Revenue & Customs | | 25/09/2018

Benefits provided to an employee by someone other than the employer (often known as 'third party benefits') are taxable on the employee if they are provided by reason of their employment. For example, if you work at a car dealership and receive an award from a ‘third party’ car manufacturer.

HMRC’s guidance cites case law on this issue. One of the cases quoted surmises that 'by reason of the employment' covered cases where an employee would not have received a benefit unless he had been an employee. Further, the employment must be one of the causes of the benefit being provided. It need not be the sole cause or even the main one. But it must be an operative cause in the sense that it was a condition of the benefit being granted.

In practice you can normally assume that a benefit which is provided by someone other than the employer and which is plainly connected with the employee’s employment has been provided by reason of the employment. Some third party benefits, small gifts and corporate entertaining and hospitality, are exempt from tax.

Latest News

  • Company director imprisoned

    10/10/2018 - More...

    A director of a company that manufactured security systems has been found guilty of two counts of fraudulent trading and one count of fraudulently removing property in anticipation

  • The end of late payments by large organisations?

    10/10/2018 - More...

    The government has been trying to combat the widespread issue of large businesses abusing their position by making late payments to small businesses. This initiative has included

  • Importing from non-EU countries

    10/10/2018 - More...

    There are special rules for businesses that import goods from non-EU countries. Whilst most smaller businesses importing goods will use a courier or freight forwarder it is still

 

 

           

Copyright © 2018 - CRW Accountants

designed by Zoe Adele Parsons MA

Cookie Policy