Our top tips of how you can help out your team with managing their cash with these tax free benefits. Here are our top 5! Remember any cash given to employees is taxable (treated as earnings) unless its reimbursement of eligible costs incurred on behalf of the business.
Trivial Benefits
- ‘Trivial benefits’ are tax free benefits you can pass on to your team and yourself as a Director of a company
- Each benefit must be no more than £50 in value
- Can be anything so such things as:-
- Shopping/gift vouchers
- Alcohol/treats
- Hampers
- Health and wellbeing gifts
- Cannot be cash nor vouchers which can be exchanged for cash
- There is no cap annually for employees
- Directors are capped at £300 in the personal tax year
Mobile phones
- Each employee is entitled to a company mobile phone
- Tax Free
- Saves your employee the expense
- Can cost as little as £40 a month for you as an employer
Christmas/Team annual event
- One team annual event is tax free each year
- Capped at £150 (inc VAT) per head
- This can be say Christmas party/night out or a summer celebration
Award Scheme
- Staff suggestion schemes such as:-
- Best work process improvement award
- Best social media post
- Best customer services delivery
- Best sustainability idea
- Up to £5000 (not a typo) award tax fee and sooo motivational !
Pension Advice
- Get a pension adviser in for your team to give them free advice and look at their existing pensions
- As an employer you pay up to £500 per head – tax free for your employees and reduces your tax bill
- Completely under-utilised by employers
- Employees really appreciation this
Even better still, these are all tax deductible for company! Helps reduce that increased corporation tax bill which could very easily be looming next year!
Check out this blog for more tax free benefits!