Tx notes fa22 Final

June 2023 to March 2024 exams
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7. Benefits in Kind 
The term earnings includes non-cash benefits received by the employee or provided to a member of 
his or her family (unless they are specifically exempt). 
Exempt benefits
include:
๏
Canteen available to all sta
ff
.
๏
Qualifying removal expenses up to £8,000.
๏
Car parking spaces at or near place of work. 
๏
Workplace nurseries (crèches).
๏
Contributions by an employer to an approved pension scheme.
๏
Workplace parking for bicycles plus a tax free cycling allowance of 20p per business mile.
๏
Provision of a mobile telephone for private use (one per employee)
๏
Christmas parties etc for sta
ff
(up to £150 per person per year)
๏
Sport and recreational facilities available generally for the sta
ff
.
๏
Annual exemption of £500 per employee where employer pays for medical treatment to assist 
the employee in returning to work after a period of absence due to ill health or injury.
๏
Outplacement counselling services to employees made redundant. The services can include 
counselling to help adjust to the loss of the job and to help in finding other work, ie retraining 
courses up to 2 years.
๏
Contributions towards additional household costs (such as light and heat) incurred by an 
employee who works at home up to £6 per week or if higher evidence must be provided by the 
employee to justify the expense.
๏
Long service awards up to £50 per each year of service (with a minimum requirement of 20 
years service).
๏
Trivial benefits which do not cost more than £50 per employee and which are not cash or cash 
vouchers.
๏
Use of employer bicycles if used by employees to and from work.
๏
Provision of eye care tests and/or corrective glasses for employees using VDU’s (if paid directly, 
by reimbursement to the employee or by providing vouchers).
๏
Incidental overnight expenses provide by the employer for overnight stays from home. Up to £5 
per night (UK) and up to £10 per night (overseas).

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