Meeting points

Speakers quoted:
Andrew Gotch CTA(fellow); lecturer and specialist tax adviser.
Louise Dunford LLM LLB Barrister; lecturer and writer.

Third party benefits confusion

PTP has seen a large increase in the number of employer compliance visits where HMRC have requested records of benefits provided to third party employees. Under Reg 95 (SI 2003/2682) the provider of the benefit must give the recipient a note of the benefit's cash equivalent if that benefit would have been a P11D item had the recipient been employed by the provider. This applies whether or not the benefit is taxable in the employee's hands. Andrew Gotch noted there is no statutory obligation to pass HMRC details of which third party employees have received benefits but this point has not been tested in law.
The recipient of the benefit is put in a difficult position when he receives the information from the...