Share this content
6

Trivial Benefits

EIM

Didn't find your answer?

Why does EIM21861 say "There is no monetary limit below which a benefit is inevitably to be regarded as trivial in nature or above which it is automatically subject to tax and NICs".

but .gov says

"You don’t have to pay tax on a benefit for your employee if all of the following apply:

it cost you £50 or less to provide"

Replies (6)

Please login or register to join the discussion.

avatar
By Tax Dragon
28th Oct 2020 08:24

Those two statements do not contradict. Both are correct, though you need to cite more of the latter to demonstrate that.

Thanks (0)
Replying to Tax Dragon:
Psycho
By Wilson Philips
28th Oct 2020 08:35

The reason that they don’t contradict is that in selectively quoting text the OP has overlooked

“ This page explains HMRC’s approach to trivial benefits for tax years 2015 to 2016 and earlier”

EDIT - crossed in post with comment below.

Thanks (1)
Replying to Wilson Philips:
avatar
By Tax Dragon
28th Oct 2020 08:46

Ha! Because I knew the OP had skipped over large chunks of text, I unwittingly skipped over the part of the question that started "or above which...."

However, far too many accountants read the second quote as: "You don’t have to pay tax on a benefit for your employee if.... it cost you £50 or less to provide".

Crossing words out is great fun, isn't it?

Thanks (1)
avatar
By whitevanman
28th Oct 2020 08:27

Read the whole of EIM 21861 (including the para at the top). It is self-explanatory.

Thanks (1)
blue sheep
By NH
28th Oct 2020 08:51

goodness knows why I had missed that, thats the value of this forum - well done everybody!

Thanks (1)
Replying to NH:
Ivor Windybottom
By Ivor Windybottom
28th Oct 2020 09:26

NH wrote:

goodness knows why I had missed that, thats the value of this forum - well done everybody!

The value of this forum is a trivial benefit and should not be declared to anyone!

Thanks (1)
Share this content

Related posts