Tax Free Benefits in Kind

24th January 2010

Certain benefits in kind still remain entirely tax free, and can be used in flexible remuneration and/or salary sacrifice situations:

  • Pension scheme contributions (up to £40,000 per employee per annum, plus potential ‘catch-up’ from previous 3 years).
  • Childcare vouchers or employer supported childcare (up to £55 per week, depending upon personal tax status),
  • Use of a bicycle for mainly home to work commuting and other business use, which is available to all employees,
  • Mobile phones, for both business and private use, where the contract is between the employer and the supplier,
  • Free or subsidised meals provided on the employer’s premises, which are available to all staff,
  • Expenses incurred in the provision of any death in service life assurance lump sum, gratuity, or similar benefit given to an employee or to any member of the employee’s family or household on the employee’s death (no longer capped at x 4 salary),
  • Places in nurseries on premises made available and managed by the employer,
  • Contributions towards ‘Use of Home as Office’ (£4 per week without the need to keep supporting evidence of cost),
  • Contribution towards incidental overnight expenses, when you stay away from home for at least 1 night on a work journey,
  • Job related living accommodation,
  • Trivial benefits, including a small gift in recognition of a particular event (eg marriage or birth of child), a seasonal gift or provision of free tea and coffee.
  • Long service awards, for those with over 20 years service, where the cost does not exceed £50 per year of such service,
  • Awards to employees under formally constituted suggestion schemes,
  • Provision of a parking space at or near the employee’s place of work,
  • Provision of subsidised public road transport to and from work, which is available to all employees,
  • Annual parties where the cost to the employer does not exceed £150 per head,
  • Sports facilities made available to employees which are not available to the general public,
  • Certain work related training expenses,
  • Removal expenses resulting from a change in job, up to the first £8,000,
  • The personal use of an employer’s computer, in certain circumstances.
  • Guaranteeing a personal debt.
  • Using the business purchasing power to obtain discounted personal goods/services, which are reimbursed by the individual.

As with all exemptions provided under statute or extra statutory concession, care is required to ensure that the actual circumstances fall within the precise criteria laid down. Our tax team are able to assist clients in structuring transactions to fully utilise these ever-diminishing tax exemptions.



 
Other Blogs in General Practice
 
Adrian Mackenzie
23rd March 2017 Investment Choice

Tactical Asset Allocation: A recipe for disappointment ? If world events over the last year or so are anything to go by, then it probably tells us “to expect the unexpected”. Please see the following chart, produced by Vanguard, which we believe demonstrates how difficult it is to predict the performance of various asset classes.…

Read More »

Steve Smith
18th February 2017 Growth Funding

Anglia LEP: Offering £1/2m grants towards business expansion. The New Anglia Local Enterprise Partnership is calling for local businesses wanting to grow and create new jobs to apply for grants up to £500,000 through the Growing Business Fund. Businesses across Norfolk and Suffolk may apply for a grant of up to 20% of the total cost…

Read More »

Mark Haydon
8th November 2016 Update: Nov-16

Whitings’ Newsletter: Nov-16 The general practice team at Whitings have produced their latest newsletter, to keep clients updated on relevant recent changes to tax and related legislation: November 2016

Read More »

Ian Piper
20th October 2016 Business Success

Ely Business Awards 2016: Whitings judge and present top award. Congratulations go to Soopa Doopa Branding Limited, well deserved overall winners of the 2016 Ely Business of the year awards. Full list of finalists and winners Photos from the awards ceremony in Ely Cathedral The firm judges, sponsors and presents the top (winner of winners)…

Read More »

Kim Clayden
17th October 2016 Paul A Hill & Co Merger

Whitings Expand into St. Ives and Chatteris Paul Hill (left) congratulating Mark Haydon Following a merger with St Ives and Chatteris based Paul A Hill & Co, the company has moved into Compass Point Business Park which, it says, will allow for greater presence in the town. Mark Haydon, managing partner of Whiting & Partners, said:…

Read More »

Steve Smith
27th September 2016 Soft Funding

Cambs LEP: Current loans and grants on offer. The Greater Cambridge Greater Peterborough Local Enterprise Partnership is the Government’s flagship vehicle to stimulate economic growth in our area. Grants and loans currently on offer include: Signpost 2 Loans: Loans of between £50k and £1m to SME’s for start-up and growth (Inc: CapEx, infrastructure, training and…

Read More »