Benefits Code II: Not Low Paid Employees

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17A.3.3    Statutory and Concessionary Exceptions

Another feature of ITEPA is the decision to treat exceptions from a charge not in provisions adjacent to those charging rules but miles away. So the exception from chapter 10 (section 201) which used to be found in TA 1988 section 155 etc next to the old head of charge are now to be found in part 4 of the Act sections 227–326 eg sections 313–323. The following are among those excepted from the remit of chapter 10 by rules in part 4:

  1. the provision of accommodation supplies or services used in premises occupied by the employer,50 provided any use for non-work purposes is insignificant.51 Thus, a director is not chargeable on sums spent on an expensive secretary or on luxurious office furniture. This test was softened in 2000 to extend the exemption to benefits used outside the workplace where they are provided solely for the purpose of the employment and used primarily for this purpose. This extension does not apply to certain expensive asset like yachts or planes;52
  2. any pension, annuity, lump sum, gratuity or other like benefit to be given to the director or employee or his spouse children or dependants on his death or retirement;53
  3. medical insurance for foreign visits and medical treatment, the need for which arises while the director or employee is abroad;54
  4. entertainment by someone unconnected with E’s employment;55
  5. benefits provided in connection with overnight absences from home;56
  6. living accommodation (and any other benefits which are subject of other parts of the benefits code);57

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