Volunteer Drivers
thank you for a service provided, or
• a seasonal gift such as a turkey, bottle of wine or box of chocolates • seasonal flu jabs • the repair of employer-provided bicycles up to £20 in value.
Where a gift is in excess of the above examples (a crate of wine as opposed to a single bottle at Christmas) it will be necessary to consider content and cost, in determining whether the benefit is trivial or not. Such items cannot be included in a PAYE Settlement Agreement, but if HMRC agrees that they are ‘trivial’, they will confirm this by letter. Finance Act 2015 was to contain a new statutory exemption for trivial benefits to apply on and after 6 April 2015. The proposed new limit was £50 and ostensibly replaced the unofficial £25 limit currently in use as a guide to triviality. A number of conditions were to be implemented in order to prevent employers providing a series of benefits in kind and exempting them as trivial and these were to be detailed in the 2015 finance act. This was not enacted as expected. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS From 6th April 2016 the new statutory exemption for trivial benefits was applied, removing from tax charge most benefits in kind where the value on each occasion is £50 or less and it is not being provided under a salary sacrifice arrangement. There is no limit to the number of occasions a trivial benefit is provided unless it is a close company (a micro business with five or fewer shareholders, or members) and the benefit is provided to one of the members or to a member of that person’s family. In such cases there is an annual cap of six occasions and £300. Cash and cash vouchers and any benefit in kind provided by way of a salary sacrifice arrangement are not included in the new exemption, neither are benefits provided for services performed in the course of employment. VOLUNTEER DRIVERS Tax is not payable on mileage or other allowances paid to volunteer drivers except where the allowances received exceed the expenses incurred. Tax in such cases will be due at the employee’s lowest marginal rate. As volunteer driving is not gainful employment there is no liability for either Class 2 or Class 4 NICs.
Volunteer Driver Mileage Rates from 6th April 1998 No printing, copying or reproduction permitted. Annual Mileage On first 4000 miles 28 p 17 p 35 p 20 p 45 p 25 p 63 p 36 p
Engine Capacity
Cc
On each mile over 4000 miles
Up to 1000
1001-1500
1501-2000
Over 2000
211
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