UK - The Inland Revenue has removed an anomaly which had led to the "double counting" of car and fuel benefits in tax calculations.
Benefits provided by an employer are subject to income tax if the employee earns more than £8500 a year.
All benefits – including car and fuel concessions – received by an employee are counted in deciding whether earnings are above the limit.In addition, all benefits provided by vouchers, tokens or credit cards are taxable regardless of the level of earnings.
Previously, tax law meant the value of car and fuel benefits – often provided through vouchers, tokens and credit cards – could be added twice to the calculations. This “double counting” could take employees over the £8500 limit.
But the Inland Revenue’s Extra Statutory Concession – which takes immediate effect – means that car and fuel benefits will now be exempt from calculations for vouchers and credit cards.
The Inland Revenue said the concession would give employees a reduction in tax liability which they may not have been entitled to under the “strict letter of the law”.
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up
The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.