"If Santa, Inc. or other employers haven't correctly reported the BIK charge for their company-provided sleighs or vans, it could be a very expensive Christmas. HMRC can charge penalties of up to 100% of any unpaid BIK tax, and the standard annual taxable benefit charge on the provision of light commercial vehicles is £4,020."
"If a light commercial vehicle is only used for business purposes, it shouldn't create any taxable benefit for the worker or any specific payroll reporting obligations for their employer. However, if Santa is using the sleigh throughout the year, including the eleven months of the year in which he isn't working for personal journeys, which can include commuting to Santa, Inc's. Lapland HQ from his home, HMRC will regard it as a taxable benefit. Businesses with non-magical vehicles will face the same scrutiny from the Revenue if employees make personal journeys in their company-provided vans."
"If BIK hasn't been correctly reported in previous years by Santa, Inc. or any other business, the company could also be liable to tax and National Insurance Contribution (NIC) penalties for the failure to capture the relevant benefit on Form P11D."
HMRC can impose penalties up to 100% of unpaid benefit-in-kind (BIK) tax when employer-provided vehicles used for personal journeys are not properly reported. The standard annual taxable BIK for light commercial vehicles is £4,020. Vehicles used solely for business do not create a taxable benefit or payroll reporting obligation. Personal use, including commuting or private journeys in company-provided vans or sleighs, generates a taxable benefit. Employers that failed to report BIK in prior years may incur tax and National Insurance Contribution (NIC) penalties for not recording the benefit on Form P11D. The rules apply equally to all businesses.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]