Q - The directors of my company all have company credit cards for their work expenditure (which is, of course, wholly, exclusively and necessarily incurred in the performance of the duties of their employment). They have all built up substantial 'points' and have decided to spend them all on their families and also on buying gifts for the rest of the staff with a retail value of £100 each. There must be benefits all over the place!?
A - Curiously not at all. Air miles and credit card loyalty points are not taxable as a benefit on the directors (or any other employees) in this situation. How they are used is irrelevant.
As for the gifts to the employees by the directors, while it would be difficult to argue they are not benefits, the question as to the quantum of the liability returns to the standard 'Pepper v Hart' issue of cost to the provider. In this case the cost to the provider is clearly nil and so no tax will arise on the directors or the recipient employees.
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