Is the taxable value of a benefit the amount incurred in the tax year it was provided or in which the cost was incurred?
In general, unless more specific calculation rules apply, the Benefits Code states that the taxable value of a benefit provided to an employee is the cost incurred by the employer in providing it. Section 203 of the Income Tax (Earnings and Pensions) Act 2003 states, in part: The cash equivalent of an employment-related benefit is [...]
One of the basic principles of PAYE is that, when an employee moves from one employer to another, the tax code used by the previous employer is also used by the new employer. However, that is not always possible. Form P45 is completed by an employer when an employee leaves and has four separate parts. [...]