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  Benefits In Kind: What You Need To Report

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So, by now you should have already filed your P11D for 2014/15, and if you’re like most of us, you felt some anxiety over what does and does not need to be reported as a benefit in kind these days. This guide will help you prepare for the 2015/16 filing, and let you file without worry.

Worse still, the HMRC’s guidance can be a bit misleading on this point. Let’s clear this up – your company only needs to report benefits to an employee or director which were provided by an outside party if the company had a hand in arranging the benefit. If your company asked a partner company to provide a prize for, say, a productivity competition, your company must report that prize.

This only applies to benefits given ‘by reason of employment’. If a supplier, customer or other associated business or person gives an employee or director a gift or a discount that, theoretically, any member of the Public could have received, your company does not need to report it.

Of course, the devil is in the details. We’ve outlined some of the specific situations you’ll face below, and made it clear whether your company must report these gifts or not.

Benefits that must be reported:
• Benefits provided by other people or businesses, but which your company was involved in arranging.
• Benefits provided ‘by reason of employment’ such as a ‘20% discount for all X-Corporation employees’.
• Gifts to an employee from a company you work with due to your company being a customer of theirs.
• Entertainment gifts worth £250 or more AND where the beneficiary attends alone, or at least unaccompanied by the gift-giver.

Benefits that need not be reported:
• Anything not received ‘by reason of employment’ – meaning anything someone not part of your company could have received, especially ‘free gifts’ or discounts
• Gifts of accompanied entertainment of any kind that are ;by reason of employment’ but are not rewards for past work or incentives for future work or deals OR which are valued at £250 or less do not need to be reported, even if they fall into a different category as well.