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Hello,
How do I calculate how much tax I have to pay on benefits in kind? I'm flying to Asia for a company meeting, then staying on for a hol (which I will pay for) before flying home. The flights are paid for by work but are classed as "benefit in kind" and may be taxed. HMRC has calculators for company cars as benefits but not flights...
Thanks!
Really??
I guess that could well be the letter of the law, but for folks I know who've done it, they had to get there and back for business, therefore the flights were a business expense. Would be different if taking partner or not paying for the extended hotel bill etc...???
Sadly, when I've worked abroad it's been in, get the job done, out
the flights are surely a business expense?
HMRC may well take the view that they're not wholly business & want some of it as a perk
Dunno though
Who says these are a benefit? The benefit should be put on the P11d benefits sheet by the employer - there are sections dealing with expenses and travel. As I understand it, the employer puts on all expenses and its up to you to claim back non taxable expenses via your tax return, the difference of which you are taxed on. More guidance should be on the HMRC website.
I have no idea why they're benefits, but they are. It's nuts as far as I'm concerned... The flights are bought & paid for for work, why does it matter what I do in terms of work/play between getting there & getting out. But them's the rules & I'm sticking to them so I don't get 12" of strap-on from HM tax inspectors!
You'll end up paying tax on flights required as part of your employment! Bonkers, you're getting shafted.
I wouldn't bother with paid for business flights.
If for some reason you get questioned, you have a perfectly legitimate reason for not declaring them. You only get in trouble if you really take the pi55.
Who has said the flights are a benefit in kind? I can see that if the return flight is more expensive because you're staying on, the difference might be a benefit, but being taxed on the whole cost seems a bit harsh, unless it's not usual for the meetings to be held in Asia so they view the meeting as secondary to the holiday.
If it's your company HR/accountants saying the flights are a taxable benefit, I'd check with HMRC direct - you might get an informed answer from them...
I've done that a couple of times before and there's been no tax implications on the flights (and our HR/finance are pretty clued up). I could maybe see if they needed to be more expensive tickets to allow for your holiday time then the additional cost might be seen as a benefit but I still can't see HMRC being interested.
Paying for your flights for benefit in kind is crazy - how else are you going to get to your meeting? If you are going on business then it's a business expense. If you are paying more for your flights to stay then you could pay the company back the difference (had this in companies before) but that's very tight of a company. You probably can't find business flight benefit in kind on the HMRC website - since it doesn't exist?
Business class flights are Ok if someone else is paying for them, long haul first even better.
The strict answer it is the cost to the company of providing the benefit*, in this case, on the basis that your business trip is a valid business expense then the only additional cost or marginal cost, if any, to your employer should be taxed if I remember correctly.
* This is the general rule for all benefit not specifically legislated for otherwise such as cars, housing etc.
Its pretty standard as far as HMR&C are concerned, but it won't cost you anything as you 'tick' the 'wholly for business' box.
The only taxable expense is 'entertainment', but all that means is that the company takes the hit, not you.