Abolish the perk

One of the hottest employment law issues this year has been – expenses.  The MPs kicked off a scandal that reveals a fault line in our attitudes to “expenses” claims.

Are expenses there simply to reimburse individuals for the costs they directly incur in working for their employer?  Certainly the Revenue take the view that any expenses beyond those that are unequivocally for the business are ‘benefits’, and should be taxed accordingly.   By implication, the Revenue recognises that there may be a two tier “expenses” system – one for those items that are  ‘wholly and necessarily incurred in the performance of one’s duties’, and not taxable benefits for the employee, and a second for “expenses” that are in the nature of benefits which are taxable in the employee’s hands.

Annabel Kaye is Managing Director of Irenicon Ltd, a specialist employment law consultancy.   Tel: 08452 303050  Fax: 08452 303060  Website : www.irenicon.co.uk.  You can follow Annabel on twitter – http://twitter.com/AnnabelKaye

Leave a comment

Filed under benefits, pay

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s