A company has suggested giving a key employee a company credit card on which he can purchase private items.
Clearly there is a taxable benefit however the NIC position has me confused.
The guidance at the NIC manual (NIM02090) suggests that so long as the rules therein are applied then no Class 1 NIC is payable. So for example, the employee purchases a £1000 television for himself with the blessing of his employer but tells the shop assistant that the purchase is for his employers staff so they can watch tomorrow's Gold Cup. The shop accepts this, the employee takes the television home and sets it up for his children to watch in the playroom. No Class 1 NIC is payable?
Presumably if the employee doesn't follow NIM02090 and produces the card and makes payment without any word other than thank you, the purchase is subject to Class 1 NIC.
Does anyone have any definitive answers or explanations?
Thanks in advance,
Mark
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