Revenue outlines dual incentive tax contracts

A new tax provision opportunity for corporate clients who pay tax on behalf of incentive programme participants was outlined by the Inland Revenue at the recent ITMA seminar, “The Tax Man Cometh”. Up until now, it has been common practice for companies offering incentive travel schemes to pay delegates’ tax at either the basic or higher rate. However, speaking at the seminar, Janet Marshall, specialist advisor with the Inland Revenue’s Incentive Award Unit, outlined a further option for corporates operating incentive travel events. Marshall told the seminar audience that it is in fact possible for organisers to draw up two separate contracts for the same incentive programme – one for employees who are taxed at the basic rate and the other for higher rate taxpayers. ITMA executive director Charles Robinson said: “At one time, when companies opted to apply the basic rate scheme to all participants on an incentive, it meant that those higher earners had to make up the difference themselves to fulfil their tax liability.” Neil Pace, director of travel and event management at the Grass Roots Group, attended the seminar and was surprised at this information. “The flexibility of applying both rates came as news to us and obviously we’ll be advising our clients accordingly,” he said. Companies can use the services of an incentive agency to assist in calculating any tax liability, but the Inland Revenue contract must still be directly with the corporate operator. “Nonetheless, it is good practice [for agencies] to be in a position to advise clients on their tax liabilities and options,” added Robinson. l In other ITMA news, the association is to create a biannual platform to analyse and forecast business trends that might have an impact on conference and corporate event organisers. The inaugural ITMA Forum will take place on 1 October at the British Academy of Film and Television Arts, when a keynote address will be given by economist Adrian Cooper.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Register now
Already registered?
Sign in
Top incentive trends for 2020

Top incentive trends for 2020

We asked event planners what trends they have noticed in incentive travel for this year as part of the State of the Industry report.

Air New Zealand unveils lie-flat beds for economy passengers

Air New Zealand unveils lie-flat beds for economy passengers

The airline says the new design is a “game-changer” for economy-class customers on long-haul flights.

Hong Kong offers free venue hire amid coronavirus fears

Hong Kong offers free venue hire amid coronavirus fears

A government subsidy aims to reinvigorate the conferences and events industry after event cancellations.

Can video save events amid Coronavirus cancellations?

Can video save events amid Coronavirus cancellations?

Event industry must stop thinking 'if you’re not physically in the room, you’re a no-show’ says video platform CCO.

Top doctor reveals 12 ways to make events more accessible

Top doctor reveals 12 ways to make events more accessible

Doctor Helen Grote describes how to make events more inclusive for disabled delegates.

Emerging incentive destinations for 2020

Emerging incentive destinations for 2020

State of the Industry: Incentives report offers insight into the destinations event planners are booking compared to last year.

Bomb victim's mother fights to make venues safer

Bomb victim's mother fights to make venues safer

Home Office is consulting on 'Martyn's Law' to protect fans at concerts and large-scale events.

Venice Carnival cut short as Coronavirus experts warn of global ‘tipping point’

Venice Carnival cut short as Coronavirus experts warn of global ‘tipping point’

Annual festival adds to a long list of pulled events while a global agency talks of cancellations, postponements and a move to virtual meetings.

'Four-poster bed, copper bath and gorgeous furnishings': a night at Down Hall Hotel

'Four-poster bed, copper bath and gorgeous furnishings': a night at Down Hall Hotel

C&IT's associate editor reviews a country house hotel dating back to 1322 with Italianate architecture and luxury interiors.

The charity ball with a projection-mapped 'Wheel of Fortune'

The charity ball with a projection-mapped 'Wheel of Fortune'

Country estate Alrewas Hayes hosted the 25th anniversary of the Hope and Homes for Children fundraiser.

LATEST JOBS