Search news archive

 

 

t: 023 80 254 900

f: 023 80 254 906 

e: info@dtlimited.co.uk--------------91 Lakewood Road, Chandlers Ford, Eastleigh, SO53 5AD

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

Self-assessment filing deadline
10/10/2018 - More...
The 2017-18 tax return deadline for taxpayers using a paper self-assessment return is 31 October 2018. Late submission of a self-assessment return will become liable to a £100 late

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login

Copyright © 2018 - David Tilsley Limited
Cookie Policy |  Privacy Notice
Home     About us   Contact us