It’s very hard to find and keep good employees. Therefore, you might be looking for ways to surprise your team.
Luckily, two planning opportunities are currently available to surprise your team in a tax-efficient manner.
Tax exemption for trivial benefits in kind
Most employees would be pleasantly surprised to receive a bottle of wine, tickets to a football match or the cinema, or vouchers for a meal.
The cost to the business is small, but the positive impact will easily exceed that.
It is now possible to give everyone in your team several of these surprises each year, and they will all normally be free from income tax and NIC.
HMRC refers to these as “trivial benefits in kind”. Provided the cost is less than £50. As you would expect of anything to do with tax, there are conditions limiting the scope, but ad+ can advise how to provide this type of benefit so that your business and your team enjoy this tax-free facility.
Short-term planning opportunity to continue valued benefits and tax savings
Job-related benefits have become an established, and often essential, part of a remuneration package which has been designed to attract the right calibre of team member. These benefits often include company cars, accommodation, school fees, health screening checks, and mobile contracts.
In recent years these benefits have often been financed via a “salary sacrifice arrangement” because of the NIC savings to the employer and employee, plus income tax savings to the employee.
The Autumn Statement announced that these tax advantages are to be restricted from April 2017. However, certain benefits will remain eligible for the tax and NIC savings. In addition, saving can be extended for a few more years with careful selection of the type of benefit provided.
ad+ can advise how to provide this type of benefit so that your business and your team enjoy this tax-free facility.
Please get in touch if you would like to discuss your own tax position.