Class 1B NICs: liability: what does a PSA cover?
- long service awards which do not satisfy the conditions in section 323 ITEPA 2003 (previously ESC A22)
- incentive awards
- reimbursement of late night taxi fares home which do not satisfy the conditions in section 248 ITEPA 2003 (previously ESC A66)
- incidental overnight expenses in excess of the statutory daily limit
- present for an employee in hospital
- staff entertainment - for example a ticket for Wimbledon
- use of a company van
- use of a pool car where the conditions for tax exemption are not satisfied
- subscriptions to gyms, sports clubs, etc.
- telephone bills
- gift vouchers and small gifts.
- relocation expenses where the amounts concerned exceed the £8,000 tax exemption threshold
- occasional attendance at an overseas conference where not all the expenses qualify for tax relief
- expenses of a spouse occasionally accompanying an employee abroad
- occasional use of a holiday flat
- one-off gifts which are not minor.
Items provided to the same employee every year are unlikely to satisfy the irregular test.
an expense or benefit for which it is impracticable to operate PAYE or determine a value for P9D or P11D purposes
- free chiropody care
- hairdressing services
- Christmas parties and other similar entertainment provided by the employer which do not already qualify for tax relief
- the cost of shared taxi fares home which do not satisfy the conditions in section 248 ITEPA 2003 (previously ESC A66)
- shared cars.
The employer will be expected to show that it is impracticable to operate PAYE on a payment, or to identify how much of a shared benefit should be attributed to each employee.
The above lists are for illustration purposes only and are not exhaustive.