Trivial Benefits in Kind ?

50Twuncle

I have seen on-line that the government is changing the rules on taxable benefits – in particular “cash plan / health insurance” – at the moment, because I earn (considerably) less than £8500 pa from my employer (part time) - I am covered under a P9D rather than a P11D – I am not taxed on this benefit - which pays out relatively trivial sums (£55 dental, £55 optical etc)
But, come next year – I will be….They are getting rid of P9D exemptions !!
https://www.gov.uk/government/publications/review-of-employee-benefits-and-expenses-final-report
This appears incredibly unfair to me – since my salary is so low and in any case, does the fact that I work on VDU equipment – allow me to have tax-free benefit of an annual eye test ?
So – is there any way that it can be classed as a Trivial Benefit in Kind ?
https://www.gov.uk/government/publications/income-tax-exemption-for-trivial-benefits-in-kind/income-tax-statutory-exemption-for-trivial-benefits-in-kind

antrobus

50Twuncle wrote: »

..So – is there any way that it can be classed as a Trivial Benefit in Kind ?
https://www.gov.uk/government/publications/income-tax-exemption-for-trivial-benefits-in-kind/income-tax-statutory-exemption-for-trivial-benefits-in-kind

Speak to your employer.

employers can apply to HMRC for agreement to exclude BiKs on the grounds that they are ‘trivial’

50Twuncle

antrobus wrote: »

Speak to your employer.

employers can apply to HMRC for agreement to exclude BiKs on the grounds that they are ‘trivial’

I have asked them and have been told that this is not possible !!
But I do not earn enough to pay any tax - so how will that work ?

TheCyclingProgrammer

AFAIK any form of health plan does not fall under the "trivial benefits" guidelines. "Trivial benefits" are things like a gift at Christmas, a bottle of wine for your birthday, that kind of thing.

bowlhead99

50Twuncle wrote: »

I have asked them and have been told that this is not possible !!
But I do not earn enough to pay any tax - so how will that work ?

So, it would be reported that you received a benefit (a benefit in kind rather than as cash in your hand) of £x. That benefit becomes part of your taxable income for the year. If your total taxable income including the value of the reported benefit is still below your personal allowances for the year, there is still no tax to pay.

So in other words, if you "do not earn enough to pay any tax" and when including the cost of the benefits such as insurance that your employer has set up and paid for on your behalf and any other taxable income from other sources you still "do not earn enough to pay any tax", then there doesn't actually seem to be an issue with them reporting the value of the benefits they gave you to HMRC, because there is still no tax bill.

However if you previously had earnings from work and income from other sources which together added up to only give you about £5 of remaining 'space' to earn income within your annual allowances and exemptions before you became a taxpayer, and then your employer confessed to giving you a £300-a-year insurance policy on top of your salary, which had not previously been reported, then you would be £295 over your allowances and would need to be paying your basic rate tax on £295 which at 20% (£59 a year) is about £1.13 a week.

uknick

Why would an eye test be considered a BIK if your job involves you working with VDUs?

When I was working (admittedly for the public sector) I used to get a free eye test every couple of years. I was never taxed on it. Some of my colleagues even had vouchers to pay for special prescription glasses for VDU use without any BIK.

antrobus

uknick wrote: »

Why would an eye test be considered a BIK if your job involves you working with VDUs?

When I was working (admittedly for the public sector) I used to get a free eye test every couple of years....

These are exempt if they are required by health and safety legislation for employees who use a computer monitor or other screen.


https://www.gov.uk/expenses-and-benefits-medical-treatment/whats-exempt

uknick wrote: »

... I was never taxed on it. Some of my colleagues even had vouchers to pay for special prescription glasses for VDU use without any BIK.

Glasses are exempt as well if the employer has "to provide them for monitor or screen work".