Latest Coronavirus Update – June 2020: With 28 new additional staff members and a new Furlough Portal built we are starting to make inroads into the influx of work that Coronavirus has created for the business.

The immediate challenge is making sure all of our customer’s July quarterly tax bill is up to date and accurate, and for those customers who have requested Furlough that these requests have been processed. To ensure this vital workstream has our team’s full focus, we have temporarily closed our phone lines for 2 weeks, starting from Monday 8th June, reopening on Monday 22nd June 2020. In these 2 weeks we will also strive to get as many emails answered and payroll changes made to our customer’s accounts.

Whilst our phone lines will be closed, we are very much open and you can contact us via email, if it is about the Furlough scheme email covid19queries@stafftax.co.uk or if it is a general payroll query or request email info@stafftax.co.uk  To read all our latest Covid-19/Furlough related FAQs click here. To access our newly built Furlough Portal click here

Natural Fit

Benefits in Kind

Sometimes known as 'perks', Benefits in Kind are added extras provided by the employer on top of the employee's standard salary. Examples of Benefits in Kind may be accommodation, use of a car or an interest free loan.

Tax is often payable on the value of Benefits in Kind and so they must be reported annually as part of your employee’s gross earnings. The report must be made via a P11D form and is the Employer’s responsibility.

What counts as a benefit in kind?
Accommodation

If you provide separate accommodation for your employee with separate metering for gas, water and electricity, it is considered a taxable benefit and must be reported as such. However, if they live in your home with shared utilities it is not taxable.

If you provide free accommodation for your employee, there is something called the Offset Allowance which currently values accommodation at £57.40 per week. If your employee is live-in and you do not charge them for accommodation you can pay them £57.40 per week less than the minimum wage.

Mobile Phone

A mobile phone is not considered a taxable benefit.

Car

Use of the employer’s car for work duties is not a taxable benefit. However provision or loan of a car for private use, including getting to and from work, is a Benefit in Kind and must be reported as such. If an employee uses their own car for work the normal remuneration is 45p per mile to cover fuel plus wear and tear. Anything above that rate is a taxable benefit.

Christmas Gifts

Employers must complete a P11D form for Christmas presents or other gifts to employees. Cash gifts or bonuses are added to your employee’s earnings and taxed in the usual way through PAYE.

Health insurance

Private health insurance is considered a taxable benefit.

Private Pension

A private pension is considered a taxable benefit. 

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