Budget 2008

Key Reliefs for All Employees

Childcare

• No income tax liability for:
  
  • employer provided nurseries
  • up to £55 per qualifying week for childcare vouchers or directly contracted childcare.

Green transport

• No income tax liability on:
  
  • works’ buses or minibuses, or subsidies to public bus services
  • loan of cycles and cycling safety equipment used mainly for qualifying journeys including home to workplace travel.

Incidental Costs of Homeworking

• No income tax liability for reasonable additional household expenses incurred in carrying out duties at home under homeworking arrangements.
• Claims over £2 per week require documentary evidence.

Incidental overnight expenses

• Payments to employees on qualifying trips:
  
  • no income tax liability if employer pays up to £5 per night for UK trips or £10 per night for trips partly or wholly overseas
  • taxable in full if limit per trip exceeded.

Long service awards

• No income tax liability for non-cash gifts (subject to exceptions):
  
  • to mark at least 20 years service with same employer
  • up to £50 per year of service in respect of which award is made.

Mobile phones

• No liability to income tax for loan of mobile phones to employees subject to limit of 1 phone per employee.

Parking provision and expenses

• No income tax liability for the provision of workplace parking:
  
  • includes space for car, van, motorcycle or cycle
    
  • within reasonable distance of workplace.

Relocation expenses

• No income tax liability on removal benefits and payment or reimbursement of removal expenses up to £8,000 in connection with an employee’s change of residence.*

* Detailed rules apply.

Annual staff parties

• No income tax liability on cost of party if VAT inclusive amount, aggregated if more than one, does not exceed £150 per head per annum.