31st March is the end of the Fringe Benefits Tax year
If you are not sure whether your business is providing fringe benefits to its employees, here are some key questions you should ask yourself:
Does your business make vehicles owned or leased by the business available to employees for private use?
Does your business provide entertainment by way of food, drink or recreation to employees?
Does your business provide employees with living-away-from-home allowances?
Does your business provide loans at reduced interest rates to employees?
Has your business forgiven or released any debts owed by employees?
Has your business paid for, or reimbursed, any private expenses incurred by employees?
Does your business provide a house or unit of accommodation to employees?
Do any employees have a salary package (salary sacrifice) arrangement in place?
Has your business provided employees with goods at a lower price than they are normally sold to the public?
What is exempt from FBT?
Certain benefits are excluded from the scope of the FBT rules. The following work related items are exempt from FBT if they are provided primarily for use in the employee’s employment:
Portable electronic devices (e.g. laptop, tablet, mobile, PDA, electronic diary, notebook computer, GPS navigation device) that are provided primarily for use in the employee’s employment (limited to the purchase or reimbursement of one identical or similar portable electronic device for each employee per FBT year. Small business employers will be able to provide more than one identical or similar device to employees from 1 April 2016;
An item of computer software;
Protective clothing required for the employee’s job;
A tool of trade.
If you are registered for FBT or you think that you may need to register now is the time to start preparing the information for your accountant.
If you would like to know more about FBT for this year take a look at our next blog post. The detail around FBT - What employers need to know about FBT 2017
If you have any questions about FBT call Michael on 49409 400