Fringe benefits tax (FBT) is a tax employers pay on certain benefits they provide to their employees, including their employees’ family or other associates. The benefit may be in addition to, or part of, their salary or wages package.

 

If you are a director of a company or trust, benefits you receive may be subject to FBT.

Fringe benefits tax is separate to income tax and is calculated on the taxable value of the fringe benefits provided.

 

The FBT year runs from 1 April to 31 March.

 

Fringe benefits tax (FBT) law includes various categories of fringe benefits and specific valuation rules for each category.

 

You will need to pay FBT even if the benefit is provided to an associate of your employee or by a third party under an arrangement with you.

 

Types of Benefits include:

 

• Car fringe benefits

• Car parking fringe benefits

• Entertainment and fringe benefits

• Expense payment fringe benefits

• Loan fringe benefits

• Debt waiver fringe benefits

• Housing fringe benefits

• Board fringe benefits

• Living away from home allowance fringe benefits

 

Is you business paying Fringe Benefits?

 

If your business is paying fringe benefits then you should talk to Jeffkins Accountancy and review your obligations. Jeffkins Accountancy is experienced with the preparation of Fringe Benefits tax returns and can ensure your business benefits are structured correctly and compliant with tax law.