Southport Reporter (R) Bourder
Southport & Mersey Reporter - Mobile

Click on here to go to latest edition's main page.

  Search Edition Archive  

Visit our online shop...

   

Click on to go to our hub website.

Latest Edition   Archive   Shop   Email   Mersey Reporter
Please support our advertiser below...

For more recommended businesses click on here...

Weekly Edition - Published  8 February 2015

 

Local News Report - Mobile Page


Move to end Taxation of trivial employee benefits has been backed by campaigners

THE Low Incomes Tax Reform Group has backed new legislation to stop workers from facing Tax charges on low value benefits they receive from their employers.  LITRG believes the current rules governing what constitutes a Tax Free trivial benefit are too subjective and can leave employees shocked and confused as to why they end up having to foot a Tax Bill for receiving a minor item. The group supports the introduction of new, clearer, statutory rules on trivial benefits because it will reduce the costs and administration burdens for employers and HMRC; and also mean employees do not face an unexpected Tax charge on items below £50 and which meet other new conditions for the exemption.  The changes should mean that receiving gifts such as a bottle of wine given to celebrate the birth of an employee's child or book tokens or a bunch of flowers from a manager, will not cause the recipient a Tax Headache in the future.  However, LITRG has recommended that the new £50 statutory limit on each individual benefit that can be received without Tax, be kept under constant review, something the Government is yet to commit to. The Tax campaigners are concerned about an oversight which is the effect of the exemption in relation to workers on Tax Credits, Universal Credit and means tested benefits. Such people may not know whether they have to report a trivial benefit as income and there is a risk that such a minor benefit may impact on the amount of money they get in welfare payments.

Anthony Thomas, LITRG Chairman, said:- "We expect the change should mean that employees do not face the shock and confusion of a Tax charge on items that neither they nor their employers in practical terms view as a taxable benefit. This should help companies with their administration of their businesses and frankly allow workers to enjoy what has been given to them without worrying about the cost.  The new statutory exemption will help to clarify what is a trivial benefit in kind and we welcome a movement towards a more'principles based system' rather than the current subjective 1. It is vital that the £50 limit is kept up to date, otherwise the exemption will become obsolete very quickly and not provide the long term simplification of administration which this is designed to achieve.  Legislation for Tax Credits, Universal Credit and means-tested benefits should be amended, if necessary, to ensure that exempt trivial benefits are ignored for these purposes. This is important, as the employee in receipt of the trivial benefit will have no record of its value."

A trivial benefit will qualify for the exemption if it meets 4 conditions: it costs less than £50, it is not cash or a cash voucher, it is not part of a salary sacrifice arrangement and it is not provided in recognition of the employment. The changes will come into effect on 6 April 2016.

 

News Report Page Quick Flick.

Click on here to go to the mobile menu page for this edition. News Report Page Quick Flick
 

Read this page.

Southport Reporter (R) Bourder


  


 

 

 RSS Our Weekly Headlines

 


(+44)  08443 244 195
Calls to this number may be recorded for security, broadcast, training and record keeping.
 

4a Post Office Ave, Southport, Merseyside, PR9 0US, UK

 

Click on to see our Twitter Feed.  Click on to see our Facebook Page.  Click on to follow our LinkedIn Profile. This website is licence to carry news from Vamphire.com and UK Press Photography. 

This is our media complains system...

We are regulated by IMPRESS, the independent monitor for the UK's press.

How to make a complaint
Complaints Policy
Complaints Procedure
Whistle Blowing Policy

 



Southport Reporter® is the
Registered Trade Mark of Patrick Trollope

...