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Tax update – week ended 20 August 2010

25th August 2010

Update 1. Employers lending cycles to employees The HMRC ordinarily taxes loans of cars, equipment etc. as a "benefit in kind". Essentially the benefit of this loan is considered part of the employee's wages. This is generally subject to income tax (20%/40%) and national insurance both for employers (12.8% national insurance) and employees (11% national insurance) Lending a cycle (and helmet) to ...read more