Employer pays for visa application

Employer pays for visa application

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Suppose than a UK employer pays for the working visa application for a potential new non-EU employee, or for the renewal of a visa for an existing non-EU employee. The cost to the employer is the visa application fee plus associated legal fees.

1. Does the payment of these costs constitute a taxable benefit for the employee?

2. Are these costs tax deductible for the employer?
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Jeffrey A

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By JeffreyA
26th Mar 2009 17:44

Thanks for the reply, Haggis
Thanks for the reply. That was my initial reaction too.

Presumably employers must pay for visa applications reasonably frequently in the case of multi-national companies. Perhaps those companies just gross up the benefit.

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By thehaggis
09th Mar 2009 21:09

Yes; Yes

The work permit belongs to the employee, therefore the costs met by the employer would be treated as earned income of the employee. The normal deduction rules will apply, and it is unlikely that the cost of the permit is wholly exclusively and necessarily incured. The cost is attributable to the specific circumstances of that employee, and not by reason of that particular employment (not every employee needs a work permit - unless you have a unique situation along the lines of Taylor v Provan).

The expense is a cost of employment, therefore deductible by the employer.

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