t: 01633 240080,  f: 01633 240081

24 Bridge Street, Newport NP20 4SF

Benefits provided by someone other than their employer

Source: HM Revenue & Customs | | 25/09/2018

Benefits provided to an employee by someone other than the employer (often known as 'third party benefits') are taxable on the employee if they are provided by reason of their employment. For example, if you work at a car dealership and receive an award from a ‘third party’ car manufacturer.

HMRC’s guidance cites case law on this issue. One of the cases quoted surmises that 'by reason of the employment' covered cases where an employee would not have received a benefit unless he had been an employee. Further, the employment must be one of the causes of the benefit being provided. It need not be the sole cause or even the main one. But it must be an operative cause in the sense that it was a condition of the benefit being granted.

In practice you can normally assume that a benefit which is provided by someone other than the employer and which is plainly connected with the employee’s employment has been provided by reason of the employment. Some third party benefits, small gifts and corporate entertaining and hospitality, are exempt from tax.



 

Latest News

  • Anti-money laundering rules

    17/10/2018 - More...

    The Money Laundering Regulations (MLR) are designed to protect the UK financial system and put in place certain controls to prevent businesses being used for money laundering by

  • New style £50 note to be introduced

    17/10/2018 - More...

    In a joint statement issued by HM Treasury and the Bank of England it had been confirmed that the £50 note is to continue to be part of the UK currency. The new £50 note will be

  • Tax to pay if you exceed the annual pensions allowance

    17/10/2018 - More...

    The annual allowance for tax relief on pensions has been fixed at the current level of £40,000 since 6 April 2014. The previous allowance was £50,000 and prior to 6 April 2011, the

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login


Copyright © 2018 Haasco Limited (Company registration 7030921). Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales (Firm C003118150). Indemnity insurer - Axis Speciality Europe SE (Policy 374997016)

Cookie Policy | Privacy Policy