Budget 2008

Key Reliefs for All Employees - GT

Key Reliefs for All Employees


  • 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.
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