The Government has updated its guidance on certain benefits and expenses which have been paid to employees during the Coronavirus outbreak. These are all things which are likely to have been provided to employees as a direct result of COVID-19 such as personal protective equipment (PPE).
The announcement has come after the government controversially decided that when paid for by employers, Coronavirus tests will be taxable to the employee. Please note that guidance about this is not covered in the latest expenses and benefits update. We do expect that the government will be changing their mind about the test being taxable and will keep you updated in due course.
This guidance is about income tax treatment only. National Insurance contributions treatment may vary depending on the individual benefit or expense and it covers:
- Living accommodation
- Volunteer fuel and mileage costs
- Paying or refunding public transport costs
- Free or subsidised meals
- Company car ‘availability’
- Employee Car Ownership Schemes (ECOS)
- Salary sacrifice
- Employer provided loans
- Employees working from home
- How to report benefits and expenses to HMRC
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