6 |
Sections 72, 153 also applies to sums put at the employee’s disposal and paid away by him.29 Thus, sums are caught even though the money at no time becomes the property of the employee.30 |
The employer must report all such payments. In order to avoid too much paperwork, a notice of nil liability is often issued but these are not usually given for ‘round sum allowances’. 31 |
17A.3 Chapters 10 and 11: Benefits in Kind: General or Residual Charge on Employment-Related Benefits |
17A.3.1 Outline |
ITEPA deals with rules for specific benefits (chapters 6–9) before the general rule (chapters 10 and 11) and then tries to justify this by downgrading the general charge to a ‘residual’ charge. Those who have been teaching this material for years will not find the change helpful or sensible. The only thing to be said for it is that in terms of benefits actually provided the rules on cars affect more people than these general rules. However it is the general rules which remain to catch any unlisted benefit and in relation to which there has been most case law. They are therefore treated first. |
ITEPA section 201 states that chapter 10 applies to employment-related benefits ie a benefit or facility of any kind provided by reason of the employment. Repeating the concepts used in chapter 3 ITEPA chapter 10 applies to all sums paid in a tax year including sums paid before or after the period of actual employment. Benefits provided by the employer are usually treated as paid by reason of the employment—unless the employer is an individual and the payment made in the normal course of the employer’s domestic family or personal relationship (see further below). |