The Shipleys LLP team have put together this quick round-up of the key incentives.
Employee Pension Schemes
Contributing to an employee pension scheme is a highly tax eﬃcient way to remunerate staﬀ and often the most important beneﬁt prospective employees look for.
You can also help employees progress through their careers with tax-deductible vocational training that will reduce your corporate tax bill.
Mobile phones and home working
Providing staﬀ with mobile phones is a useful tax-free beneﬁt and if they’re home-working you can also pay them £26 a month tax-free allowance towards their expenses.
If an employee has to move home for work, you can pay them a tax-free relocation allowance of up to £8,000, albeit subject to strict HMRC qualifying rules.
Salary sacriﬁce schemes
These are where employees give up part of their salary each month to, for example, purchase a bike through the cycle to work scheme or payments into pension schemes – are a win-win as employees pay less income tax and both sides reduce their NICs.
Make the most of the £150 per-person per-year social events and activities allowance to pay for occasions like oﬃce parties, without staﬀ incurring beneﬁt in kind liabilities.
HMRC’s trivial beneﬁts rules allow you not to pay tax on a beneﬁt for your employee of up to £50 if it isn’t cash or a cash voucher, and isn’t a reward for work of in the terms of their contract. This can be used multiple times through the year.
It’s important to remember any beneﬁts have strict rules and can potentially impact on employees’ tax and NIC liabilities, so speak to our team of specialists for expert advice before implementing them.
Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary. Please talk with your usual Shipleys contact or get in touch with one of our specialists shown on this page.
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