Benefits in Kind Tax Changes for 2021/22: Your essential guide

In this blog, we outline the key benefits in kind tax changes that you need to know about for the tax year 2021/22. Look out for our other blogs detailing the changes to other types of tax this tax year.

 

Employer-reimbursed coronavirus antigen tests

In addition to the existing National Insurance disregard which continues into this tax year, a statutory exemption will be introduced (with retrospective effect for 2020/21 as well as covering in 2021/22) to prevent an income tax charge arising where an employer reimburses an employee for the cost of a Coronavirus antigen test.

 

Home office expenses

The temporary income tax exemption and Class 1 National Insurance disregard for employer-reimbursed expenses that cover the cost of home working equipment will be extended until 5^th April 2022.

 

Company cars and fuel

The appropriate percentage for zero-emission cars increases to 1% for 2021/22 regardless of when the car was first registered.

For zero-emissions vans, the van benefit charge was reduced to nil on 6^th April 2021. However, for all other vans, the van benefit charge is increased to £3,500 for 2021/22.

The appropriate percentage for cars registered on or after 6^th April 2020 are increased by one percentage point (subject to the 37% maximum charge) for 2021/22. The percentages for cars registered prior to this date are unchanged, and the diesel supplement for cars not meeting the RDE2 emissions standard also remains the same.

 

Cycle to Work scheme

Due to changes in working habits during the pandemic, employees who joined a Cycle to Work Scheme on or before 20^th December 2020 will not have to meet the condition of using the cycle mainly for commuting to work, until 5^th April 2022.

 

If you are concerned about how the changes outlined above will affect you, contact one of our advisors. We’re here to help!