As a general principle a taxable benefit arises where the following features are present (Chapter 10, Part 3 Income Tax Earnings and Pensions Act (“ITEPA”) 2003, section 201):

I. The employer is providing the employee, or a member of their family or household, “a benefit or facility of any kind”; and

II. The benefit or facility is provided “by reason of employment”.

A number of typical employer benefits fall within the charge to tax under this rule, for example, private medical insurance and emergency non-tax-exempt childcare costs.

Please note this is not any form of tax advice, we would advise you to take advice from your tax advisors on how this service can be treated for tax purposes. We can provide you with usage numbers per employee report at the end of each month.