Flying Club Miles Taxable?

quote:Originally posted by willd

... however she does a lot of traveling and gets to keep all the miles she earns.




I do hope she declares this on her tax return as a 'benefit in kind' because that is exactly what it is!

[Decker]

Interesting point Tonty although the last time I checked HMRC had never won this argument. cf this article. Was there a recent Commissioner's ruling?

quote:Originally posted by Decker
Interesting point Tonty although the last time I checked HMRC had never won this argument. cf this article. Was there a recent Commissioner's ruling?


No not as far as I am aware. However there has been a ruling in Germany, which could be successfully used in the UK, that a company is allowed to make an employee hand over any air miles earned as part of business travel. Provided of course that the company paid for the travel. There is very much a school of thought that if a major company brought a similar case in the UK, they would hold in favour of the company rather than the employee. Of course if this was to happen, I would imagine that the tax man will re look at the current situation.

EDIT: Further research seems to suggest that in Canada, they do tax airmiles. Something along the lines of $0.04 per mile.

mmmm I didn' create this as a new thread but perhaps the mod that did could have put a note to that effect

I was going on something I has been told previously at work - no earning miles on work travel and if you do they could be taxible - especially if you did a lot of travel and hence earned a lot of miles.

I am not any sort of tax expert !

[Decker]

Sorry Tonty my bad - I knew I was pulling the thread off topic and referenced this in the OP rather than here...

IN THEORY they're a BIK but the trouble of enforcing it is probably too great.. although some conspiracy theorists out there think that the Government will start automating this in due course by data mining.

No worries mr decker ('double' to your friends?)

It is as the say a 'minefield' and am sure there is unit in HMRC looking at these things - and probbaly for some time - just working out the costs of collection etc against the benefits of income received.

I wouldn't be surprised if HMRC are looking at it. After all if somewhere like Canada already has a system in place I would imagine HMRC will see no reason why it couldnt work here.

[RichardMannion]

The sheer nightmare of trying to administer it perhaps?

What next, taxing on points earned for spending company money?

Some known BIK's are ignored due to the complexity of adminsitering, personal phone calls on company mobiles spring to mind. I seem to recall in the past, BIK for tea/coffee?

[fozzyo]

Never understood the company miles thing and how that is enforceable since the miles aren't owned or accessible by the company.

Miles as a taxable benefit ... is it the value of the miles that is taxable or the value of what you are using them for?

Mat

quote:Originally posted by RichardMannion
The sheer nightmare of trying to administer it perhaps?

What next, taxing on points earned for spending company money?

Some known BIK's are ignored due to the complexity of adminsitering, personal phone calls on company mobiles spring to mind. I seem to recall in the past, BIK for tea/coffee?


Wish the BIK's were ignored where I work, I have to collect cheques from people in our office when they use the mobile for personal use. Then bank them all and allocate the costs, its a nightmare.

[RichardMannion]

quote:Originally posted by Penny_L

Wish the BIK's were ignored where I work, I have to collect cheques from people in our office when they use the mobile for personal use. Then bank them all and allocate the costs, its a nightmare.


That must be your employer being tight then, as its not HMRC asking for the money.

Got to love tax in the workplace - currently having a discussion with our outsourced catering operation about the taxation of sandwiches that are eaten outside of the supplied canteen ('premises') as they should not attract VAT given they are cold takeaway items. And in true HMRC style, there is a guide!

[buns]

I too have to reimburse for any private calls made on the firm's mobile - hence I carry two and use my own[:D] Downside is that I must appear either a poser or a drug dealer, but counter productive if you ask me.

On the subject of air miles, the official line is 'miles earned in the course of company travel should be used for future company flights and should not influence the choice of carrier'

Yeah[:w][:w][:w]

buns

I love HMRC said hwvlover FCA.
[}:)]

[Decker]

I used to work with them as a consultant writing software for EBs and SOs. Fun times.

quote:Originally posted by buns
On the subject of air miles, the official line is 'miles earned in the course of company travel should be used for future company flights and should not influence the choice of carrier'

If you only have one FF acount for Business and Personal then it must require a bit of administration to sort that out - on whose time do you do it.

On the subject of taxing FF miles - the taxation surely has to be on usage - not on the miles themselves which have a variable value (or no value at all if they expire). The only way to administer it is to put the emphasis on the airline to report redemptions and allocate a specific value.

FM

quote:Originally posted by RichardMannion
quote:Originally posted by Penny_L

Wish the BIK's were ignored where I work, I have to collect cheques from people in our office when they use the mobile for personal use. Then bank them all and allocate the costs, its a nightmare.


That must be your employer being tight then, as its not HMRC asking for the money.

Got to love tax in the workplace - currently having a discussion with our outsourced catering operation about the taxation of sandwiches that are eaten outside of the supplied canteen ('premises') as they should not attract VAT given they are cold takeaway items. And in true HMRC style, there is a guide!


You get the best jobs. Clearly. [:X]