Benefit In Kind

[johnny37]

If your employer chooses to reward you with holiday vouchers instead of cash, is it a taxable benefit in kind? Does the employer tell HMRC or is it up to the employee to alert them to fix their tax code? How does either party benefit from this arrangement?

Thanks/

[dannyk13]

Info here:-
https://www.gov.uk/expenses-and-benefits-holidays/what-to-report-and-pay

[fiction-factory]

The employer notifies tHMRC of benfits in kind on a p11d
https://www.gov.uk/employer-reporting-expenses-benefits/reporting-and-paying
As to whethe rholiday vouchers count, they probably do but the directgov page may clarify

[EDDIE51]

The employer benefits because they are able to buy holiday vouchers at under the face value, so they save over giving you the same amount of cash.

[New Judge]

"If your employer chooses to reward you with holiday vouchers instead of cash,..."

I don't think it's his choice. You are entitled to be paid in cash unless you agree otherwise. Unless of course it is some sort of "reward" outside your normal pay.

[EDDIE51]

^^ Good point NJ. If your pay is £200 a week you can't be given £150 and a £50 holiday voucher . The voucher has to be a form of bonus.

[fiction-factory]

Yes, whilst they can't force you to take a benefit instead of a contractual cash/salary payment Sometimes employers have chosen to give benefits in lieu of a salary INCREASE as part of a periodic (usually annual review)- eg a below inflation salary increase + gym membership subsidy +extra day's holiday. That sort of change is of course perfectly legal.
Holiday vouchers are not something I've heard being given before as a regular element of pay but they are sometimes used as one off rewards