HMRC have confirmed that the earnings threshold for taxing certain benefits-in-kind (BIK) will not be raised.
HMRC have confirmed that the £8,500 threshold under which 'lower paid' workers are not taxed on certain BIKs will remain unchanged, despite other administrative reforms in this area of taxation.
HMRC originally considered removing the threshold as part of a consultation exercise, which will mean employers having to put BIKs and expense payments through the payroll.
The consultation on payroll and benefits ended on 17 March 2008. HMRC have subsequently said that responses received indicate that the removal of the £8,500 threshold would have an adverse impact on low paid employees and possibly the voluntary sector. The Government has therefore confirmed that it will retain the £8,500 threshold.
About The Author
Sarah Laing
Editor, TaxationWeb News
Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences).
Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession.
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