There are a lot of things an employer can provide to their employees that are not taxable. We thought we’d do a list of the most common benefits – how many of these did you know about?
- Subsidised onsite restaurant/canteen facilities (as long as they are available for all employees)
- Providing a car parking space at or near your place of work
- Providing a mobile phone for private use by an employee
- Employer’s contribution to a registered pension scheme
- Trivial benefits (excluding vouchers) which cost no more than £50 and are not in recognition of services provided by the employee. This exemption applies to items such as birthday presents
- Benefits aimed at encouraging employees to travel to work not by car. This exemption includes work buses, subsidies to a public bus service, as well as the provision of bicycles and related safety equipment (again, these need to be available to all employees)
- The cost of a Christmas party or similar event is allowable, up to a cost of £150 per year per person. If the cost exceeds this, then the cost of the whole event is taxable.
- Workplace nurseries for childcare as well as employer approved child care schemes
- Relocation and removal expenses up to £8,000 (subject to certain conditions)
- A home workers expenses of £4 per week/ £18 per month can be paid tax free, without any need for supporting documentation/evidence
- Long service awards (gold watches being the traditional gift) to celebrate employment of 20 years or more are exempt up to a cost of £50 for each year of service
- Training expenses paid for by the employer
- Sporting/recreational facilities which are available to employees generally but not to the public
- Employee liability insurance as it protects an employee from a work related liability
- Provision of eye tests and/or glasses for VDU use (provided it is available to all employees)
- Awards of up to £25 under a staff suggestion scheme
- Loans with a beneficial interest rate (ie below the official interest rate, OFR), provided the loan is less than or equal to £10,000 throughout the tax year
So if you are an employer looking to reward your staff in a way that is tax efficient for them, then you may want to consider some of these items.