Call us today

Tax experts welcome ‘trivial’ delay

Get in touch today - call Kent on 01634 570 390 or Surrey on 01737 370 493

Book a FREE consultation

If you would like to get some impartial advice, simply book a free consultation and we'll get in touch with you as soon as we can.

Tax experts welcome ‘trivial’ delay

Tax specialists have welcomed a government announcement that it is delaying legislation introducing an exemption from income tax for ‘trivial’ benefits in kind (BIKs).

Trivial benefits provided by employers include gifts such as a box of chocolates at Christmas or a bouquet of flowers for an employee who has had a baby or is absent from work through sickness.

Under the proposed legislation, which had been due to take effect from 6 April, small benefits of up to £50 would have been exempt from income tax, provided they were not made in recognition of services, part of a contractual obligation or made in conjunction with a salary sacrifice arrangement. However, the measure was dropped from the 2015 Finance Bill when it was published on 24 March.

The current rules will continue to apply, requiring employers to agree with HM Revenue & Customs which benefits they provide count as trivial.

The Association of Taxation Technicians (ATT) had called for a delay in implementing the exemption, arguing that more time was needed to allow guidance to be prepared and shared with employers.

ATT president Natalie Miller said: “The draft legislation would have made life for employers more complicated as it suggested a significant change in what should be considered a trivial benefit. We hope that the Revenue will use the time afforded by the postponement to reconsider the finer details of some aspects of the policy.”

Link: HMRC guidance on expenses and benefits

Top

Urgent COVID-19 Notice
Working From Home

Our first priority is the health and well-being of our team and our community. Therefore, with a heavy heart we have made the decision to temporarily work from home with immediate effect.

We are listening to the government’s daily updates, taking each day as it comes, and will reopen our offices as soon as it is safe to do so.

If you have any questions or need to discuss any issues at all please do email or call us on our usual number 01634 570 390.

The general email is enquiries@orchardaccountants.co.uk.

We hope everyone is keeping well and staying safe.

This website uses cookies to enhance your browsing experience... moregot it