KRA Benefits in Kind Advice
Benefits in kind are received by a great number of employees and directors, particularly those with company cars. The income tax implications of these benefits can be complicated and so taxpayers need to understand the rules so that they can properly prepare their self assessment tax returns and make decisions about their future remuneration package.
Helpfully, HMRC do provide guidance on the correct tax treatment of various expenses and benefits: HMRC Website
Specific areas which we are typically asked to advise on include:
- Understanding the mechanics of the new company car tax rules,
- Minimising the tax on company cars,
- Receiving non taxable benefits in kind,
- PAYE coding implications of these benefits, including coding out underpayments,
- Preparing forms P11d and calculating the resultant Class 1a NIC liability.
We at KRA are happy to discuss the circumstances within your company or you as an individual so we can plan the best tax postion for you or your company.