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Benefits and expenses

Expert commentary and practical guidance from ICAEW related to the taxation of benefits and the treatment of expenses under the UK tax regime.

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Need to know

HMRC contact information
  • Helpsheets and support
HMRC contact information, including telephone numbers, online options and postal addresses, together with tips.
UK tax rates, allowances and reliefs
  • Helpsheets and support
ICAEW’s Tax Faculty provides links to help practitioners find the latest tax rates, allowance and reliefs.
Tax Faculty
  • Promotional material
Tax is a fast-moving and ever-changing world. Our expert staff and volunteers, and consultation work with government, means we can bring you the latest developments and expert opinions. Join today to access our resources and keep on top tax form.

Practical guidance

ICAEW's Tax Faculty produces TAXguides to provide practical support on technical areas of tax.

TAXguide 06/19: Termination payments
  • Technical release
  • 12 Apr 2019
A new regime for taxing termination payments was introduced from 6 April 2018. TAXguide 06/19 sets out a number of questions in relation to the changes, with answers provided by HMRC.
See all TAXguides

Features and articles

Tax return fix for student loan deductions
  • Article
  • 09 Sep 2024
Taxpayers who make student loan repayments and whose income includes payrolled benefits in kind (BIK) should follow HMRC’s guidance when completing their self assessment (SA) tax return, warns ICAEW.
Tax news in brief 19 June 2024
  • Article
  • 19 Jun 2024
Highlights from the broader tax news for the week ending 19 June 2024, including: a malware warning from HMRC; help from HMRC with submitting forms P11D and P11D(b); and developments in international tax.
Exclusive How to prepare for mandatory payrolling of benefits in kind
  • Article
  • 06 Jun 2024
HMRC has announced that employers must payroll benefits in kind from April 2026. In this article, Michael Nicolaides and Kym Wise consider what we do and do not know about HMRC’s plans, and how employers can begin to prepare for the changes.
Agents can register to payroll client’s benefits-in-kind
  • Article
  • 02 May 2024
It is now possible for agents to register with HMRC for benefits-in-kind (BIK) to be taxed through their client's payroll for 2025/26 onwards.
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Webinars and recordings

Exclusive Payroll benefits and expenses
  • Webinar
  • 16 Oct 2024
This webinar from the Tax Faculty will relay the practical implications of the payrolling of benefits in kind.
Exclusive Payroll and Rewards Update 2024
  • Webinar
  • 10 Apr 2024
This webinar from the Tax Faculty will provide an update on all the recent and upcoming changes to payroll, rewards and employment taxes in 2024/25.
Company cars webinar 28 02 2024
  • Webinar
  • 29 Feb 2024
  • PDF (765kb)
Accompanying slides for the Taxation of company cars webinar broadcast on 28 February 2024.
Exclusive Employment taxes update 2022
  • Webinar
  • 26 Jan 2022
In this webinar from the Tax Faculty, employment tax experts Kate Upcraft and Ian Holloway provide an update on the key changes in the employment tax arena for 2022.
Exclusive Employment taxes update 2021
  • Webinar
  • 25 May 2021
This webinar Kate Upcraft will provide an update on the key changes in employment tax for 2021.
Exclusive Tax Round-up 2020
  • Webinar
  • 24 Sep 2020
This webinar from the Tax Faculty provides a round up of all the measures that are under review and subject to consultation, and how the faculty will be responding.
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Markel Tax FAQs

Questions and answers on UK tax issues and trends provided by Markel Tax, for eligible members.

Exclusive Salary sacrifice for company car
  • Helpsheets and support
  • 01 Aug 2024
FAQ on whether a client, who has made an agreement with his employer to contribute towards the cost of an electric company car via salary sacrifice, can include the salary sacrifice on P11D as a payment for private use.
Exclusive Treatment of benefits in kind granted to a business owner's dependant
  • Helpsheets and support
  • 09 Apr 2024
FAQ on the treatment of benefits in kind, where a business owner makes a company car, and company fuel card, available for the private use of his wife.
Exclusive Salary sacrifice - cycle to work scheme
  • Helpsheets and support
  • 18 Jan 2023
FAQ questioning whether a salary sacrifice arrangement needs to be set up for a director who is provided with a company bicycle under a cycle to work scheme.
Terms of use

Markel Tax FAQs are correct at the time of going to press. To check current validity, please call the ICAEW Tax and VAT Helpline.

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Bloomsbury Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising around 80 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Accounting and Tax Service.

Exclusive Tax on the termination of employment
  • eBook
  • 2024
  • Donald Pearce-Crump
A practical and fully comprehensive guide to the tax implications that need to be addressed when an employment is terminated.
Exclusive Pensions and investments
  • eBook chapter
  • 2024
  • Lucy Webb
Tax rates and tables for pensions and investment schemes, updated to reflect measures passed in the Finance (No 2) Act 2024.
Exclusive Bloomsbury's tax rates and tables 2024/25: Finance (No. 2) Act Edition
  • eBook
  • 2024
  • Lucy Webb
Tax rates and tables updated to reflect measures passed in the Finance (No 2) Act 2024.
Exclusive Extracting funds from the company
  • eBook chapter
  • 2024
  • Peter Rayney
Chapter containing tax planning advice on extracting funds, written for anyone who advises or runs a family or owner-managed company.
Exclusive Providing shares to employees
  • eBook chapter
  • 2024
  • Peter Rayney
Chapter containing advice on providing shares to employees, written for anyone who advises or runs a family or owner-managed company.
Exclusive Remuneration strategies
  • eBook chapter
  • 2024
  • Peter Rayney
Chapter containing advice on remuneration strategies and tax planning, written for anyone who advises or runs a family or owner-managed company.
Exclusive Benefits and Expenses
  • eBook chapter
  • 2024
  • Peter Rayney
Chapter containing advice on tax planning for benefits and expenses, written for anyone who advises or runs a family or owner-managed company. Topics covered include: company cars and vans, travel and subsistence costs, living accommodation and other common employee benefits.
Exclusive Benefits, expenses and termination payments
  • eBook chapter
  • 2024
  • Ben Hancock, Sarah Bradford, Tim Kelsey, Alastair Kendrick
Chapter providing detailed legal and best-practice information on employee benefits, expenses and termination payments, written for payroll managers.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the Acceptable usage terms.

 

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eBooks

The Library & Information Service provides a collection of eBooks as a benefit of membership. Please log in to access these titles. If you are unable to access an eBook, please see our Help and support or contact library@icaew.com.

Exclusive Readily convertible assets
  • eBook chapter
  • 2024
  • Malcolm James
Explains how these assets are defined and valued under the Social Security (Contributions) Regulations 2001 and the Income Tax (Earnings and Pensions) Act 2003. This section is of particular relevance to payroll managers handling benefits in kind.
Exclusive Benefits in kind
  • eBook chapter
  • 2024
  • Malcolm James
A full chapter covering benefits in kind under the UK employment tax system. Includes a range of sample tax calculations with subsections on valuation of benefits, NICs, salary sacrifice, vouchers and tokens, and more.
Exclusive Working in employment
  • eBook chapter
  • 2023
  • Telegraph Media Group
A chapter covering the tax treatment of earnings and benefits from employment. Includes a consideration of the PAYE system, tax codes, tax-deductible expenses, employee travel, home working, benefits-in-kind, employee share ownership, and payments on termination of employment.
Exclusive Employment related securities and unlisted companies
  • eBook
  • 2023
  • Ken Moody
Explains how the employment related securities ('ERS') rules in ITEPA 2013, part 7 apply to employee share acquisitions. The main emphasis is on the Enterprise Management Incentives ('EMI') share option scheme, which is relevant mainly to unlisted companies due to the financial and other limits applicable.
Exclusive Employment-related securities and PAYE/NICs
  • eBook chapter
  • 2023
  • Ken Moody
A chapter examining the treatment of employment-related securities for the purposes of PAYE/NICs. It includes an in-depth discussion of the rules around readily convertible assets (RCAs).
Exclusive Principles of employment income
  • eBook chapter
  • 2021
  • Malcolm James
This chapter provides an overview of the forms of employment income and their treatment under UK tax law. This includes general principles used to establish employment status, the taxation of intermediaries, and the scope of employment income.The chapter includes a reference table for the taxation of benefits and expenses.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

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Articles and books in the ICAEW Library collection

The collection of the ICAEW Library & Information Service includes a range of articles, books and reports on the taxation of benefits and expenses. A selection of recent books on this topic is set out below.
Pension magic: how to make the taxman pay for your retirement, 2024/25
  • Library book
  • 2024
  • N. Braun
  • Taxcafe UK
This book 'shows you how to build a big retirement pot by claiming thousands of pounds of extra tax relief on your pension contributions'. Includes sections on pension contribution rules, pension freedom rules, pensions v ISAs, higher-rate taxpayers, auto-enrolment, salary sacrifice pensions, company directors, family pension planning and pension planning for the self-employed and property investors.
Employee share schemes
  • Library book
  • 2024
  • H. Wood, S. Diosi
  • LexisNexis
A brief digest covering various aspects of employee share schemes. The authors provide an overview of the types of schemes available, the common pitfalls, agreeing the valuation of the shares with HMRC, and preparing for and undertaking a due diligence exercise.
Employee share schemes: equity reward for private companies, 3rd ed.
  • Library book
  • 2024
  • T. Dalby
  • Claritax
This book provides practical guidance for employers and their advisers regarding the implementation of employee share schemes. The author explains the principles that apply when an employee acquires an equity stake in the employer's business, and details the tax reliefs afforded by different statutory schemes.
Employee share schemes, 9th ed.
  • Library book
  • 2024
  • M. Ife
  • Bloomsbury Professional
This book reviews key issues and techniques involved in establishing and operating share schemes. It includes worked examples to illustrate complex calculations and precedents to assist with implementing and understanding the operation of each scheme.
101 employer and employee tax tips, 2023/2024
  • Library book
  • 2023
  • S. Bradford
  • Tax Insider
A collection of tax planning tips aimed at employers and employees. The author covers various exemptions and reliefs which are available to employees, and strategies for tax-efficient remuneration.
Rayney's tax planning for family and owner managed companies, 2023/24
  • Library book
  • 2023
  • P.Rayney
  • Bloomsbury Professional
This book examines a wide variety of tax planning matters from the viewpoint of the company, its working and nonworking shareholders and its employees. Includes information on valuing a family or owner-managed company. The book covers all relevant legislative changes up to August 2023.
Global mobility and employment tax compliance for remote workers in the UK
  • Library book
  • 2022
  • M. Syeda
  • LexisNexis
A digest examining how domestic PAYE rules are applied to globally mobile individuals working in the UK.
Employment-related securities and unlisted companies, 4th ed.
  • Library book
  • 2022
  • K. Moody
  • Spiramus Press
This book explains how the employment-related securities (‘ERS’) rules in ITEPA 2003 apply to employee share acquisitions, particularly in relation to private or unlisted companies. It also covers relevant capital gains tax rules and corporation tax reliefs.

To find out how you can borrow books from the Library please see our guide to borrowing books.

You can obtain copies of articles or extracts of books and reports through our document supply service.

Representations

ICAEW REP 103/23 Tax incentives for occupational health
  • Representation
  • 11 Oct 2023
  • PDF (274kb)
A representation dated 11 October 2023 to a consultation published by HM Treasury and HM Revenue & Customs on 20 July 2023.
ICAEW REP 096/23 EOTs consultation
  • Representation
  • 28 Sep 2023
  • PDF (175kb)
A representation dated 27 September 2023 to a consultation published by HMRC on 18 July 2023.
ICAEW REP 079/23 Non-discretionary tax-advantaged share schemes
  • Representation
  • 22 Aug 2023
  • PDF (273kb)
A representation dated 22 August 2023 to a consultation published by HM Treasury on 5 May 2023.
ICAEW REP 001/23 Form P11D
  • Representation
  • 10 Jan 2023
  • PDF (181kb)
Text of letter sent on 19 December 2022 to HMRC about form P11D employer annual return of employee expenses and benefits.
ICAEW REP 091/22 Hybrid and distance working OTS review
  • Representation
  • 31 Oct 2022
  • PDF (400kb)
A response dated 28 October 2022 to a review published by the Office of Tax Simplification on 31 August 2022.
ICAEW REP 79/20 Tackling disguised remuneration tax avoidance
  • Representation
  • 05 Oct 2020
  • PDF (153kb)
A response dated 30 September 2020 to a consultation published by HMRC on 21 July 2020.
ICAEW REP 102/19 Written submission to Independent Loan Charge Review
  • Representation
  • 01 Oct 2019
  • PDF (186kb)
A response dated 30 September 2019 to a call for evidence to the Independent Loan Charge Review launched by the Chancellor of the Exchequer on 11 September 2019.
ICAEW REP 28/19 - National minimum wage: salaried workers and salary sacrifice schemes
  • Representation
  • 04 Mar 2019
  • PDF (358kb)
A response dated 1 March 2019 to a consultation published by the BEIS on 17 December 2018.
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Useful links

Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.

Expenses and benefits A-Z
  • Website
  • HM Government
Government guidance on individual expenses and employee benefits presented in an A-Z list
Expenses if you're self-employed
  • Website
  • GOV.UK
Guidance on the treatment of company expenses for self-employed taxation explaining different categories of allowable business expenses.
Tax on company benefits
  • Website
  • GOV.UK
Information aimed at employees about tax on taxable benefits such as company cars, accommodation and loans provided by employers.
Payrolling: tax employees' benefits and expenses through your payroll
  • Website
  • HMRC
Guidance on how to report expenses and benefits provided to employees or directors, explaining which benefits can be payrolled, how to work out the cash equivalent, salary sacrifice, pay periods, situations where the employee pays towards the cost of the benefit, and where an employee’s tax is more than 50% of their pay.
Terms of use

ICAEW accepts no responsibility for the content on any site to which a hypertext link from this site exists. The links are provided ‘as is’ with no warranty, express or implied, for the information provided within them. Please see the full copyright and disclaimer notice.

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