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Where Taxpayers and Advisers Meet

Benefit in kind

Posts: 1
Joined: Tue Dec 06, 2016 3:30 am

Benefit in kind

Postby azb200 » Tue Dec 06, 2016 3:42 am

Hi all,

I'm new here and very much appreciate any help you might be able to offer on this. Hopefully this is the correct part of the forum to post in.

I work in the UK and have been posted on a secondment to the US for a year. During this time I was paid my usual UK salary and taxes, I was never paid in the US. During my visit I paid all the costs myself. On my return I claimed back through an internal process the cost of accommodation, food, car hire, etc. which came from a specific external grant to cover travel costs.

My query is whether I should pay any sort of tax on this refunded money? I don't know whether for tax purposes it would be considered company paid housing, for example. Or if this is treated the same as if I was just paid extra money each month so I should pay more income, NI and student loans. Everything I've read up on so far seems to be targeted towards benefits you'd get that are outlined in your contract.

Internal finance doesn't seem to have a clue so was hoping someone here might have some idea!

Thanks in advanced

Posts: 1504
Joined: Wed Aug 06, 2008 3:55 pm

Re: Benefit in kind

Postby LozaACCS » Tue Dec 06, 2016 9:57 pm

Your residence and domicile position must be considered, let us assume that you are UK domiciled.
The next issue is whether you are UK resident, if you are, then all of your earnings are taxable in the UK and the BIK must be recorded on form P11D.(S15 ITEPA 2003)
The employment abroad may not meet the requirement for it to be a temporary workplace because of the 40% rule, (happy to stand corrected on this), if this were the case then relief for the overseas expenses would be available under S341 or S376 ITEPA 2003.

If you are treated as non resident under the Statutory Residence Test then the duties performed overseas are not subject to UK tax (nor are the BIK), (S27 ITEPA 2003) apportionment is based on the number of UK and overseas work days (S41ZA ITEPA 2003)

Posts: 3094
Joined: Sat Feb 01, 2014 3:26 pm

Re: Benefit in kind

Postby bd6759 » Tue Dec 06, 2016 10:10 pm

P11D is not appropriate.

The reimbursement was in cash. That means it ought to have been PAYE'd. If both employer and employee are happy that it did no more than reimburse expenses that would be allowed under s336/s337/s338, then no harm is done, and the reimburseent should be disregarded.

The temporary workplace rule is 24 months. 40% (significant extent) only needs considered if the period is longer than that. A secondment, by defintion, means attendance at a place for a temporary purpose. This posting ticks that box.

He was only out for a year, and will be resident throughout.

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