What to report - Benefit in kind
Cars & Vehicles - Reporting company cars you have but don't use
You still need to report a company car you have but don't use. A benefit in kind charge can be raised on an employee if the vehicle is simply made available for private use, irrespective of whether it is used or not. For example, a charge can be raised if a company car remains dormant on an employee's driveway for a number of months. The mitigating factor is that the car, although not driven, is still available for the employee to use privately. The fact that the car is primarily used for business purposes is not relevant when determining a benefit in kind charge.
Cars & Vehicles - Double cab pick-up vehicles
Double cab pick-ups are viewed as chargeable vehicles by the Income Tax Division because the additional row of seats in the vehicle means that they are not primarily designed to carry goods, materials and tools, as in the case of vans.
Cars & Vehicles - Work van's not used to transport goods and materials
Vans are usually deemed to be exempt from benefit in kind as they are designed to carry goods materials and tools, rather than people, as in the case of 'cars'. However, in cases where the van is not being used primarily to carry goods, materials and tools, and in essence is being used instead of a car, a T9 should be completed. As the vehicle is not considered a car, the van would be subject to a charge under 2H of the Income Tax Act 1970. (20% of the market value of the asset when first made available). An example of this would be where a bank employee is provided with a van and carries out no practical duties for the company (i.e. no requirement to carry goods, materials and tools on a day to day basis)
Cars & Vehicles - Pool vehicle's that staff take home over the weekend or overnight
A pool car is not a pool car if the vehicle is not left outside the business premises overnight and at weekends and the vehicle is not insured for or used by a number of different employees. Factors such as being unable to leave the car at the business premises due to vandalism, would not negate the employers responsibility to provide a form T9.
Cars & Vehicles - Reporting leased company cars
The car remains an asset of the company and is subject to the normal benefit in kind charges, based on the cylinder capacity scale rates.
Accommodation - Charges on accommodation owned by family members
Benefits in kind for accommodation can be charged on an employee by virtue of their employment. The accommodation provided does not just have to be above the business premises or in accommodation owned by the business. An example of this is where the father of a restaurant owner provides free accommodation to the employees of his son's restaurants in the block of flats he owns. The employee is being provided with a room and facilities based on the virtue of his employment with his son's restaurant.
Accommodation - Reporting accommodation provided to staff where you also pay rates and utility bills
In cases where accommodation is provided, employers should ensure that any associated benefits are correctly declared. Consideration should be given to such things as rates, insurance, utilities, garden maintenance, repairs and the cost of a domestic or servant.
Benefit in kind exemption for medical insurance
There is an exemption for the charging of a benefit in kind on employees who are provided with medical insurance. However, it should be noted that spouses and family members are not included in this exemption category and are therefore subject to benefit in kind charge.
Reporting clothing allowances
Some employers confuse the payment of an allowance with a benefit in kind. All cash allowances and round sum payments should go through the payroll and should not be declared on a form T9. A list of some common allowances and payments are described below:
- clothes allowance
- entertaining allowance
- fuel allowance
- lodging allowance
- meals allowance
- round sum subsistence payments
- standby payments
- tool money
- travel allowance