From April 2016 the distinction between 'higher paid' employees (including directors) and 'lower paid' employees was removed for benefit reporting purposes.

This is a freeview 'At a glance' guide to the abolition of the £8,500 threshold for higher-paid employees.

From April 2016:

  • Benefits In Kind provided to all employees will be calculated in accordance with the previous rules for 'higher paid' employees and directors and where appropriate will be reportable on forms P11D.
  • Form P9D will no longer exist.
  • There are exceptions for ministers of religion and carers.

Ministers of religion

  • The threshold is retained for those directly employed as a minister of religion.
  • A minister of religion includes a minister of any faith, religion, or denomination.


Employees who work as carers will benefit from the board and lodging exemption.

  • The benefit of board and lodging provided to carers in the home of the person they are caring for is exempt from tax.
  • The recipient of the care must need personal care because of:
    • Old age.
    • Mental or physical disability.
    • Past or present dependence on alcohol or drugs.
    • Past or present illness or mental disorder.
  • The board and lodging must be:
    • On a reasonable scale.
    • At the recipient’s home.
    • By reason of the individual’s employment as a home care worker.

Small Print

  • Board and lodging exemption: s.306A ITEPA 2003
  • Exception for ministers of religion: s.290C ITEPA 2003

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