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ITEPA
Tax Exemption – Employer Supported Childcare
The provision of childcare facilities for children of employees, generally, gives rise to a taxable benefit. However, Section 318A of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) allowed a tax exemption on employer-supported childcare provision. This affected employers who directly-contract to provide childcare or, more commonly, operate a childcare voucher scheme. The tax [...]
Contractual Termination Payments (1)
The tax regime to be applied to a termination payment is always a topic for debate. HMRC advise that a logical sequence of questions should be asked regarding each of the elements in a termination package. Is the payment or benefit provided by an “employer-financed retirement benefits scheme (EFRBS)? If so, tax is due under [...]
Contractual Termination Payments (2)
In an almost identical case at the First Tier Tax Tribunal, Mr Grant Hayward’s service agreement with his employer said ‘the Company may in its absolute discretion elect to terminate the contract immediately and make a payment in lieu’. His termination payments were made by way of a Compromise Agreement. This used the term ‘compensation [...]
Company Vans – Jones v HMRC
An April 2012 First Tier Tax Tribunal decision fully endorses the legislative constraints of what is a van (as opposed to making a car a van). In the case, Mr Timothy Jones was supplied with a Land Rover Discovery 4 vehicle, which was available for private use. With regard to the vehicle: there were ‘racking [...]
Exempt Homeworking Payments
The Income Tax (Earnings and Pensions) Act 2003 (ITEPA) contains Section 316A, which specifically allows employers to make payments to employees who incur additional household expenses as a result of working from home, free from tax and NICs. This section first applied for expenses incurred on or after 06 April 2003. The importance of this [...]
