What is Benefit In Kind tax and when do I pay it?
Any awards being made out of the Trust in the form of a loan to employees are taxable under the Beneficial Loan Rules as if the benefit were provided by the employer (Benefit in Kind). An individual will pay tax on the HMRC assessed benefit which is the official rate of interest, currently 6.25%. This amount will then be taxed at 22% or 40% depending on whether the individual is a basic or higher rate taxpayer.
Related Questions
- Im an eligible Public Safety Officer. Can I pay my health care premiums myself and still receive the $3,000 tax benefit granted under the Pension Protection Act of 2006?
- When is a business be entitled to any tax benefit to help pay for the cost of compliance?
- Are businesses entitled to any tax benefit to help pay for the cost of compliance?
