Benefits other than cash arising from employment. The UK tax legislation seeks to assess all earnings to tax, whether they be in the form of cash or in kind. The treatment of benefits depends on the level of total earnings, including the value of any benefits, and whether the employee is a director of a company. The general rule is to value benefits at their cash equivalent although some specific benefits (e.g. company cars) are subject to specific valuation rules. For employees earning less than £8500, the benefits are only assessable if they are living accommodation or if they are capable of being turned into cash, such as credit tokens or vouchers. For all directors and higher-paid employees, (i.e. those with total earnings, including benefits, in excess of £8500), the benefits must be reported on form P11D by the employer at the end of the fiscal year. This form will include details of company cars and associated fuel provided by the employer, beneficial loans, mobile telephones, medical insurance provided by the employer, subscriptions paid, and any costs paid on the employee's behalf. These benefits will be assessed to tax. This often takes the form of a restriction to the income tax code.
Subjects: Financial Institutions and Services.