What benefits are taxable?

This is a complicated area of taxation law and it is only possible to give a broad outline answer.

Under general taxation law some, but not all, benefits provided by the employer are taxable. Benefits provided by the employer are given a value according to Inland Revenue rules. Thus the tax payable on the benefit may be less than its full value to the employee.

Examples of benefits provided by the employer which are taxable include:

• company cars provided for private use
• fuel for private motoring
• living or other accommodation
• certain employee expenses paid direct by the employer, e.g. restaurant bills
• loans, including credit provided by the company
• private health insurance

Certain benefits are exempt from taxation, providing they are available to all employees. These include:

• meals in staff canteens
• meal vouchers, up to a specified limit
• long service and suggestions schemes
• parking spaces
• some travel between work and home, for example late night travel
• sports facilities
• mobile phones

The list is not exhaustive.