Since we are currently in the midst of the P11D reporting season, it is the perfect time of year to review the benefits you provide your employees. Benefits can be a great way to incentivise and boost employee morale, particularly if the benefit does not attract an associated tax charge!

Examples of tax-free benefits that can be provided include:

  • Work-related training;
  • Car parking at or near the workplace;
  • Mobile Phones;
  • Meals provided in a staff canteen;
  • Annual events costing up to £150 per person (inc VAT); see Hannah Terry’s article “Party time!”;
  • Non-cash gifts costing no more than £50.

This list is not exhaustive and as usual, there may be further conditions to be met in order to qualify for the tax exemption.

Alternatively, you may wish to provide taxable benefits, whilst covering the associated tax liability on behalf of your employees. In order to do this, a PAYE settlement agreement can be agreed with HMRC.

Knowing your staff members and how to motivate them will be critical to implementing an effective benefits plan. Should you wish to discuss how to structure your employee benefits offering in more detail, please do get in touch.

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