Tough mudder fee

Tough mudder fee

Didn't find your answer?

As the race itself is not related to charity, if an employer pays the entrance fee for their staff to enter, am i right in thinking this will draw a benefit in kind charge? The benefit for the charity element coming from gift aid on donations? It is optional whether you run for charity or not

I cant find any specific details on this type of race

Replies (9)

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Replying to davidwinch:
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By CStone1980
12th Feb 2015 14:27

No, I was hoping that someone may have come across this situation before, and hence can give an immediate reply, I wasn't asking for anyone to google

Tough mudder is a race, some people do it for charity, others dont. HMRC website isn't very helpful, and I have not come across this before

 

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By rjoconnor81
12th Feb 2015 14:35

Employers' intentions

What was the employer's intentions, was it a "team building" exercise and available to everyone?  Or was it the employer's intention to pay for the entrance fee instead of donating

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Replying to carnmores:
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By CStone1980
12th Feb 2015 14:38

The latter, there is no donation. Its more of a goodwill gesture to encourage people to do the race. As someone else pointed out, I couldn't relate it to a business expense, as its not really team building, if anything its staff entertaining (if that's your thing)

 

 

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Euan's picture
By Euan MacLennan
12th Feb 2015 14:36

Not a BIK

I cannot see how an employee doing a cross country run in their own time could possibly be a business expense.  It will therefore be the settlement of a personal liability, which should be put through the payroll, rather than reported as a BIK on a P11D.

Perhaps, if the employee was wearing a top advertising the employer ...

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By TaxAngel
12th Feb 2015 16:28

Settling pecuniary liability

I agree with Euan.  It has to go through payroll and employer will be able to claim a tax deduction for the expense (and associated NI) provided there was a business purpose for making the payment and most employers don't spend money unless there is some business purpose.

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By JamesAnd
13th Feb 2015 14:18

Alternatively, you could do a PAYE settlement agreement with HMRC.

Can claim it as staff welfare so allowable.

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By pauljohnston
16th Feb 2015 11:59

How much per employeee?

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By CStone1980
16th Feb 2015 12:08

The cost is £130 per employee

The cost is £130 per employee, its out of work time. It will be settled via PSA as we (now) have one in place. I guess my query was mainly due to the potential connection these races can have with charity, but the fee isnt a direct contribution, hence is not allowable

I just need to confirm, the company I work for are very clueless with regards to taxation of benefits, and very flamboyant in how they spend their money on their staff and 3rd parties. I am constantly fire fighting at the moment trying to get them in line

 

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By pauljohnston
16th Feb 2015 12:39

Some useful ideas above

Euan suggested advertisng via tabbards/t-shirts ( i think).  I would accept that this would be advsertising so in view of  "very flamboyant in how they spend their money on their staff and 3rd parties."  You could suggest that the business buy some now.

Also Staff Welfare is another good suggestion.

 

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