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Is a benefit awarded by a supplier a benefit in kind and, if so, how is it taxed?

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This page has been archived because it is no longer current information but is still relevant, or it is current but over 12 months old
  • Publish date: 01 April 2015
  • Archived on: 01 April 2016

Q: My client has a limited company that deals with one specific supplier. This supplier has awarded my client’s employees with a benefit. Is it taxable as a benefit in kind on the employees and if so how is it taxed?

A: A tax liability will still arise if a benefit is provided by a third party by reason of the individual’s employment with your client.  If your client has arranged, guaranteed or in any way facilitated the benefit it is the employer that has the reporting obligation on a P9D or P11D under normal rules.