We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
One-off £250 benefit in Kind. How will it be applied?
vacheron
Posts: 2,284 Forumite
in Cutting tax
Hi.
Our company is implementing a cycle to work scheme which I intend to use to buy a bicycle for £1000 which will be paid for by salary sacrifice over 12 months.
After 12 months the bike can be bought by the employee from the company for 25% of the original cost (£250) or alternatively, the employer could choose to gift the bike to the employee as a benefit in kind with just Tax and NI on the £250 to pay.
My question is how would an employer usually handle such a 1-off benefit in kind transaction? My hope is that it will appear on that months payslip as a payment but with a matching deduction to allow the tax / NI to be automatically calculated using PAYE. It seems overkill that employees would have to have their tax codes recalculated but being new to benefit in kind calculations I have no idea.
Can anyone shed some light please?
Thanks.
Our company is implementing a cycle to work scheme which I intend to use to buy a bicycle for £1000 which will be paid for by salary sacrifice over 12 months.
After 12 months the bike can be bought by the employee from the company for 25% of the original cost (£250) or alternatively, the employer could choose to gift the bike to the employee as a benefit in kind with just Tax and NI on the £250 to pay.
My question is how would an employer usually handle such a 1-off benefit in kind transaction? My hope is that it will appear on that months payslip as a payment but with a matching deduction to allow the tax / NI to be automatically calculated using PAYE. It seems overkill that employees would have to have their tax codes recalculated but being new to benefit in kind calculations I have no idea.
Can anyone shed some light please?
Thanks.
• The rich buy assets.
• The poor only have expenses.
• The middle class buy liabilities they think are assets.
• The poor only have expenses.
• The middle class buy liabilities they think are assets.
0
Comments
-
...My question is how would an employer usually handle such a 1-off benefit in kind transaction? My hope is that it will appear on that months payslip as a payment but with a matching deduction to allow the tax / NI to be automatically calculated using PAYE. It seems overkill that employees would have to have their tax codes recalculated but being new to benefit in kind calculations I have no idea.
Can anyone shed some light please?
...
Your employer has the option to payroll (most) benefits rather than put them on a P11D. You will have to ask them whether they do or not.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards