Establishing correct treatment and method(s) by which tax and NIC are collected
This note provides an alphabetical summary list of common payments or benefits which may be provided to employees. It summarises the PAYE treatment and links to our full guidance on that item, as well as HMRC manual pages.
Navigation tip: press ‘Ctrl + F’ to search for a particular term within the table.
| Expense payment or benefit | Further details | Usual tax / NIC treatment | References | |
| A | Accommodation: provision of living accommodation | Taxed on annual value (or rental cost if higher), plus additional charge if cost over £75,000. But exempt if provided for proper performance of duties or for better performance where this is customary | P11D / Class 1A | Living accommodation; EIM11331, EIM11428 |
| Accommodation utilities: heating, lighting, council tax and water rates (for furniture, see Assets made available) | Actual cost is normally taxable. Where accommodation itself is exempt, council tax and water rates are also exempt, and other taxable costs limited to 10% of employee’s net earnings | P11D |
Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Popular Articles
Losses on shares set against income
Losses on shares set against incomeUsually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note
Ministers of religion
Ministers of religionMost ministers of religion or members of the clergy are either office-holders or employees and so their earnings are taxable under ITEPA 2003 as employment income and are subject to Class 1 National Insurance.For the purposes of the tax system, a minister does not have to belong
Computation of corporation tax
Computation of corporation taxCompanies pay corporation tax on the taxable total profits (TTP) generated in a chargeable accounting period (CAP).To ascertain whether the entity is within the charge to corporation tax, see the Charge to corporation tax guidance note.For more information on the type
