Benefit in Kind Tax

Thrugelmir

junglizt wrote: »

I don't want to sound offensive in anyway but it's a bit silly to imagine you would get a company benefit and the UK Gov wouldn't find a way of taxing it in some way!

The taxation of beneficial loans has a wider remit than just staff mortgages.

junglizt

Thrugelmir wrote: »

The taxation of beneficial loans has a wider remit than just staff mortgages.

Bit OT this Q.... A colleague in my office appears to be taxed BIK for a season ticket loan (<5k). I was under the impression that a loan as long as it was under 5k and paid up within the tax year was tax free, is that just a perk for directors of ltd companies?

disgruntledemployee_2

Silly me eh?

The rate was comparable to public rates the benefit at the time was the lack of fees ie booking fee, valuation fees and legals.

disgruntledemployee_2

Hi All,

Sorry for the delay in getting back, had a family bereavement, getting things back on track now mind.

I have checked the original employee handbook I received when joining the company which forms the terms and conditions of my employment contract. There is no mention in this whatsoever about staff mortgages or benefit in kind.

The only documents I can find from the time of application (and I kept everything I was given) was the KFI and Offer. There was no leaflet regarding BIK which I understand is what is issued to staff members now and they have to sign another form to say they understand the implications.

Other colleagues have made the same complaint as me and seem to be getting better offers, one guy in particular received a non advised service by telephone and he is being offered a much better resolution package than me.

I just don't know what to do.

How much can the FOS actually do, if as has been mentioned the company takes the stance that tax is tax, and is the lack of any conditions in the KFI/Offer/T&C's applicable?

My concern is that the FOS might say it is a HR issue, and then where do I turn?

I am out of pocket and feel something should be done about it. I understand now that I am liable for the tax but the company has ballsed up the reporting to HMRC or else why am I getting stung for two years arrears?

Any more help you can give will be gratefully accepted.

ILW

Are the company legally allowed to give tax advice, or is that outside their remit?

disgruntledemployee_2

I do not want tax advice. I want to have been made aware of the Tax Liability as a result of having the staff mortgage.

There must be a (legal) requirement to make me aware of this implication either as an employer or as a mortgage lender?

dwsjarcmcd

If a colleage has been offered a better resolution, have you quoted that settlement to your employer? Use this as a precedent.

opinions4u

disgruntledemployee wrote: »

There must be a (legal) requirement to make me aware of this implication either as an employer or as a mortgage lender?

While I would agree that there is a moral obligation to make an employee aware of this, I doubt there is a legal or regulatory requirement to do so.

antrobus

disgruntledemployee wrote: »

There must be a (legal) requirement to make me aware of this implication either as an employer or as a mortgage lender?

Surely somebody who works in complaints for the mortgage lender in question should already know the answer to this question?

ILW

I would suggest that a persons personal tax affairs are their own business, and it not the job of an employer or lender to give advice. If you want that, pay an accountant.