Well, your IRS is insane. Here in the UK gifts are not taxed, that’s why companies often buy cars and bicycles for employees - this way both company and worker save shit loads of money in taxes.
Yes they are, however there is an annual exemption of £3000. Amounts above this are subject to taxation. There is a similar exemption in the US - $17,000 as of 2023.
that’s why companies often buy cars … for employees
Yes they are, however there is an annual exemption of £3000
No, they are not. This exemption is for inheritance tax. Gifts are tax free no matter the value. The way this works is that all gifts made during 7 years before death count as your inheritance estate https://www.gov.uk/inheritance-tax/gifts
Basically if you’re not planning to die in 7 years, you can gift a billion in one transaction and pay zero taxes
That’s not how it works. Gifts over £3000 are always taxed. Additionally, gifts given within 7 years prior to death are subject to inheritance tax.
Bikes … Cars …
A company car is not compensation to an employee. They might be permitted to use it for personal use, but employers are supposed to report this fractional use which is then taxed. Whether that’s enforced or not, I don’t know, but the law is that personal use of a company-provided car is supposed to be taxed. The employee also doesn’t own the car - if they leave the company, the company keeps the car.
Bicycle tax savings is a separate thing entirely. Many benefits that promote healthy lifestyles receive special tax treatment; it’s not taxed that way just because it’s not cash.
Well, your IRS is insane. Here in the UK gifts are not taxed, that’s why companies often buy cars and bicycles for employees - this way both company and worker save shit loads of money in taxes.
Yes they are, however there is an annual exemption of £3000. Amounts above this are subject to taxation. There is a similar exemption in the US - $17,000 as of 2023.
I believe you’re talking out of your ass.
Bikes - https://www.cyclescheme.co.uk/
Cars - https://comcar.co.uk/
No, they are not. This exemption is for inheritance tax. Gifts are tax free no matter the value. The way this works is that all gifts made during 7 years before death count as your inheritance estate https://www.gov.uk/inheritance-tax/gifts
Basically if you’re not planning to die in 7 years, you can gift a billion in one transaction and pay zero taxes
That’s not how it works. Gifts over £3000 are always taxed. Additionally, gifts given within 7 years prior to death are subject to inheritance tax.
A company car is not compensation to an employee. They might be permitted to use it for personal use, but employers are supposed to report this fractional use which is then taxed. Whether that’s enforced or not, I don’t know, but the law is that personal use of a company-provided car is supposed to be taxed. The employee also doesn’t own the car - if they leave the company, the company keeps the car.
Bicycle tax savings is a separate thing entirely. Many benefits that promote healthy lifestyles receive special tax treatment; it’s not taxed that way just because it’s not cash.
Mate, I sent you proof links. If you don’t have anything to support your argument - just shut it, ok? You’re talking out of your arse.