CIOT calls for equal tax treatment of employee benefits

TAX exemptions should apply equally to employees where the cost of benefits such as flu jabs is reimbursed by their employer as where their employer provides it directly, says the Chartered Institute of Taxation (CIOT). Under current rules, a range of:- "benefits in kind," are exempt from tax on the employee if they are paid for directly by employers, or via a voucher scheme arranged by the employer. However, if the same benefits are paid for by an employee and later reimbursed by their employer, the reimbursement is taxed as part of the employee's taxable earnings. CIOT has called for the system to be aligned so the tax status of benefits depends on what is being bought, not who is paying for it. It says this will "considerably simplify life" for all involved, with so called:- "trivial benefits" an example of where the CIOT considers there is undue complication.

Colin Ben-Nathan, chair of the CIOT's Employment Taxes Committee, said:- "Whether a benefit in kind or expense is tax exempt should be determined by its nature, not whether the employer directly incurs the cost or reimburses an employee for costs the employee has incurred. This difference in tax treatment can particularly affect smaller employers who may find it harder to set up corporate accounts or enter into voucher agreements with suppliers. We think this difference should be removed so that employer reimbursements are treated similarly to directly provided employer benefits."

Under current rules, a trivial benefit provided by an employer is exempt from tax as employment income if:-

►   The cost of providing the benefit does not exceed £50.

►   The benefit is not cash or a cash voucher.

►   The employee is not contractually entitled to the benefit.

►   The benefit is not provided in recognition of particular services performed by the employee as part of their employment duties.

►   The benefit is not provided pursuant to a salary sacrifice arrangement.

For example, there will be no tax charge on employees where employers arrange flu jabs at work or provide flu jab vouchers that employees can redeem at a surgery, provided the cost is no more than £50 and the trivial benefit exemption applies. However, the exemption will not apply where a smaller employer, who cannot afford the cost of having a nurse visit their premises or is unable to obtain flu jab vouchers, instead reimburses employees who pay for a jab themselves. Colin Ben-Nathan continued:- "We think that the various exemptions for 'provided' benefits should be reviewed so that they also apply when employees incur the cost and are later reimbursed. This will considerably simplify life for businesses, employees and HMRC."

Drugs death challenge for Cheshire and Merseyside innovators

INNOVATIVE healthcare companies in Cheshire and Merseyside can bid for a slice of a £5m fund to help prevent fatal drug overdoses. The Reducing Drug Deaths Innovation Challenge focuses on innovative interventions to prevent drug-related deaths. The Addiction Healthcare Mission, led by the UK Government Office for Life Sciences and the Scottish Health Industry Partnership, is funding the challenge. The challenge consists of 2 Small Business Research Initiative (SBRI) competitions. A feasibility competition allows applicants to secure up to £100,000 of funding to develop a product prototype which, if successful, could lead to an opportunity to secure a further £500,000 in funding for product demonstration and patient testing. A demonstration competition allows applicants who already have product prototypes at a more advanced stage of development to bid immediately for the £500,000 product testing phase.

There is more detail about the scope, eligibility and application process in the following links:-

►   SBRI: Overdose detection, response and intervention - feasibility.

►   SBRI: Overdose detection, response and intervention - demonstration.

More information on the competitions is here:-

►   SBRI Reducing Drug Deaths - Supplementary Information for Applicants.

►   The challenge is open for applications until 21 April 2023.

Priority areas for projects include the following:-

►   Discrete digital technology solutions with intuitive patient and responder centric design.

►   Simple alert or responder pathways that create effective responses to potentially fatal overdose events.

►   Solutions that enhance the ability to self monitor by people who use drugs.

►   Improved equity of access, detection, and response in this vulnerable population through connected and safe digitalised platforms.

►   Enhanced simple live intelligent data-gathering processes, surveillance, and remote monitoring.

►   The fund is open to applications from any type of organisation of any size, registered in the UK, European Union or the European Economic Area that can demonstrate a credible and practical route to market.

►   Applicants must work in conjunction with a suitable UK based testbed research partner to develop their solution.
 

A Southport man has been sentenced for anti-Semitic abuse at a bar in Southport Town Centre

IN In the Court, 68 year old, Edward Ossian, who is from Southport, admitted racially and religiously aggravated harassment, and has been has been handed a 12 week custodial sentence, suspended for 12 months. Ossian has been ordered to complete 20 days of rehabilitation activity requirement. He has also been handed a 3 year restraining order and ordered to wear an electronic tag for 8 weeks.  Merseyside Police said the incident happened at the Beer Inn, on Lord Street, Southport, on 21 September 2022. 

The male who was verbally attacked told Sefton Magistrates Court that the anti-Semitic abuse had:- "shook him to his core" leaving him:- "very anxious about wearing a Kippax."

He also told the Court that it has seriously impacted his family, leaving him questioning where he felt safe. The venue on Lord Street is known locally for being friendly. It offers its customers a huge selection of local, national, and internationally bottled beers for both takeaway or consumption at the venue. More information about reporting a hate crime or hate incident to the Police, please take a look at this link::- CitizensAdvice.Org.UK.