Lesley Fidler on HMRC’s salary sacrifice guidance for cycles
HMRC’s guidance
In December 2009 HMRC issued a guidance note on what it perceived to be misuse of the tax and NICs breaks in relation to employer provided bicycles and bus passes.The note raised issues of detail that employers using packaged schemes were unlikely to have considered. It also offered a provisional truce and set out details of requirements for future schemes. An updated version of the note is available via www.lexisurl.com/vkTaE.
Background
Cycle to work schemes are based on legislation introduced in Finance Act 1999 now rewritten as ITEPA 2003 s 244. That section simply states that no liability to income tax arises in respect of the provision for an employee of a cycle or cyclist's safety equipment if:
there is no transfer of the property in the cycle or equipment in question.
...
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Home >Articles > HMRC's salary sacrifice guidance for cycles: time for the repeal of s 244?
HMRC's salary sacrifice guidance for cycles: time for the repeal of s 244?
Lesley Fidler on HMRC’s salary sacrifice guidance for cycles
HMRC’s guidance
In December 2009 HMRC issued a guidance note on what it perceived to be misuse of the tax and NICs breaks in relation to employer provided bicycles and bus passes.The note raised issues of detail that employers using packaged schemes were unlikely to have considered. It also offered a provisional truce and set out details of requirements for future schemes. An updated version of the note is available via www.lexisurl.com/vkTaE.
Background
Cycle to work schemes are based on legislation introduced in Finance Act 1999 now rewritten as ITEPA 2003 s 244. That section simply states that no liability to income tax arises in respect of the provision for an employee of a cycle or cyclist's safety equipment if:
there is no transfer of the property in the cycle or equipment in question.
...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
