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Remuneration Planning for Business Owners

Remuneration Planning for Business Owners

What is it?

There are various tax-free benefits which you can provide to you and your employees. There are a few traditional options that you can use and some lesser-known tax-free benefits. A combination of these benefits can help to improve your employees' overall remuneration package, as well as your own.

How does it work?

Below is a list of some tax-free benefits which you can provide to your employees:

  • Hot & cold beverages at work
  • A mobile phone
  • Workplace parking
  • Meals in a staff canteen
  • Staff parties can also be tax-free if they cost £150 or less per head and are open to all employees.
  • Eye tests and some glasses
  • Some health checks once a year.
  • Trivial benefits worth less than £50. This includes small gifts such as gift cards flowers, bottles of wine, birthday cake etc.
  • Ultra-low emission or electric company car
  • Childcare vouchers
  • On-site sports facilities
  • Cycles & cycling safety equipment
  • Small loans of less than £10,000 per employee (please director loans have additional rules attached to them)

The above benefits are only tax-free subject to certain conditions being met and based on legislation as it currently stands. The tax treatment of any benefits provided will also depend on your company’s situation and the individuals’ personal situation.

What are the benefits?

Careful planning can help to achieve the optimal outcome with no tax charge to yourself or the employee.

What should I do next?

Critchleys can help you with reviewing any taxable benefits and P11D forms. Critchleys can also help with remuneration planning, including advice regarding pensions and salary packages. If you have specific questions, please contact Jake Muir, one of our Lead Account Managers.

First Published 8 February 2021
Last Updated 8 February 2021

8 February 2021
First published.