Contents
Into The Unknown
Season Of Goodwill
Farewell Andre
Toon Done Doon
Day Of Reckoning
Artistic Licence
Gizmos Again
A Free Lunch
Sweet As Nectar
Security Concerns
Going For A Spin
The Cap Does Not Fit
While It's Hot?
Code Cracking
Bad Connection
Broken Trusts
You Can't Take It With You
Dividend Returns
IR35 RIP?
Spam Spam Spam
Breaking Up
Duty Calls
Time Shift
Moving Vans
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You are invited to a corporate hospitality event - a day at the races, a good lunch, a free umbrella. Is there any tax problem? Apparently the Revenue have been asking companies that entertain other people's employees to provide details of the amount they've spent and the people they've spent it on, presumably with the intention of pursuing them for some tax. To be clear about this, you can be taxed on cash and benefits you get because of your employment, even if it's not your employer providing them. If you sell cars for a local dealer and the manufacturer awards you a prize because you have the highest sales in the region, your prize is taxable (but the manufacturer will often pay the tax for you so the prize doesn't become an embarrassment). So is your day out taxable? Probably not. There is an exemption for "entertainment" provided by someone other than your own employer, as long as conditions are met. The entertainment must be nothing to do with your employer - they mustn't have asked the other person to provide it, perhaps in a reciprocal "I'll take your employees out if you take mine out" arrangement. The entertainment must also not be related to specific services which have been or will be provided. It mustn't be a prize or a bonus for doing something - it has to be "general goodwill". If that's the case, it isn't taxable, and it's not clear why the Revenue would ask the provider to give them the details. There's even an exemption for non-cash gifts costing up to £250 in a year under the same conditions - so the free umbrella is not taxable. If you've received something from someone other than your employer and you are not sure about the tax treatment, we will be happy to clear it up for you.  |