Taxation In Guernsey - Benefits In Kind

A comprehensive benefits in kind regime was introduced for the Years of Charge commencing 1996. It is the responsibility of an employer to make a return to the income tax authorities detailing all benefits in kind paid to each employee by 15 February following the calendar year in which the benefits were provided. If this deadline is not met an automatic penalty will apply. However, it is the responsibility of the individual employee to pay any tax relating to the benefits in kind received. Several benefits are specifically exempted from the new regime, such as group medical insurance premiums, pension contributions to an approved group pension scheme and associated life cover premiums. The tax liability arising on benefits is computed as follows: