Six Tax-free Benefits and Payments for Employees
By ensuring that you are familiar with tax-free employee payments and benefits, you are adding extra value to your employees without increasing the tax liability of either them or your business.
Tax-free Benefits and Payments
Many businesses operate with some degree of technology involved. If your staff require the use of a PC, laptop, tablet, or mobile phone in order for them to fulfil their roles, then these can be gifted and provided on a tax-free basis.
A taxable allowance of up to £150 per head per annum can be used for office parties and staff entertainment on a tax-free basis. This is to provide entertainment and is tax-free so long as the allowance per head is not exceeded. What better way to thank your staff for their hard work than throwing a party?
Employers are able to make tax-free contributions to their employees’ pension schemes, which is a great way of providing long-term financial stability for your staff.
Offering employees life assurance policy premiums is also another forward-planning tax-free benefit.
For a well-trained and professional workforce, employers can make tax savings when paying course and training costs on behalf of their employees, as long as the training is job-specific.
If your employees regularly work from home, therefore using their home as an office, up to £6 per week can be paid towards additional expenses such as electricity and running costs.
Accountancy
Business Accountants Worcester such as https://www.hazlewoods.co.uk/expertise/business-accountants/worcester can provide businesses with a range of advice on matters such as tax-free benefits and payments for employees. They are also there to provide expert guidance on navigating the complexities of the UK tax system, including dealing with income tax, corporation tax, and VAT on behalf of businesses.
A professional accountant can ensure that your business is maximising its tax thresholds while paying tax contributions in an efficient manner.
