From April 2016 the distinction between 'higher paid' employees (including directors) and 'lower paid' employees was removed for benefit reporting purposes.
This is a freeview 'At a glance' guide to the abolition of the £8,500 threshold for higher-paid employees.
From April 2016:
- Benefits In Kind provided to all employees are calculated in accordance with the previous rules for 'higher paid' employees and directors and where appropriate will be reportable on forms P11D.
- Form P9D no longer exists.
- There are exceptions for ministers of religion and carers.
Ministers of religion
- The threshold is retained for those directly employed as a minister of religion.
- A minister of religion includes a minister of any faith, religion, or denomination.
Carers
Employees who work as carers will benefit from the board and lodging exemption.
- The benefit of board and lodging provided to carers in the home of the person they are caring for is exempt from tax.
- The recipient of the care must need personal care because of:
- Old age.
- Mental or physical disability.
- Past or present dependence on alcohol or drugs.
- Past or present illness or mental disorder.
- The board and lodging must be:
- On a reasonable scale.
- At the recipient’s home.
- By reason of the individual’s employment as a home care worker.
Small Print
- Board and lodging exemption: s.306A ITEPA 2003
- Exception for ministers of religion: s.290C ITEPA 2003