Kill “Tax” Bill Vol. 1

Employee benefits and expenses are often complicated because they are taxed in different ways making the choice for both employee and employer just as complicated.

Certain taxable benefits can be “tax free” by virtue of available arrangements between the employer and H M Revenue & Customs under so called dispensations or PAYE settlement agreements (‘PSA’).

But more interestingly there are a significant number on non-taxable benefits from statutory exemptions or concessions that I will outline in Vol. 1 and explore in greater detail in Vol. 2, which include, but not limited to:

  • Mileage allowances (Most favourite … I do see myself as a Jenson Button!)
  • Bicycles and cycling safety equipment (Least favourite … I am no Bradley Wiggins!)
  • Car, motorcycle and bicycle parking (We receive this benefit and we do not even know it!)
  • Incidental overnight expenses (Overnight dinners at the Ritz!)
  • Christmas or other annual party (No commentary required!)
  • Home working allowance (Potentially less “coincidental” sick days!)
  • Long service awards (For us oldies!)
  • Mobile phones and smartphones (Not whilst driving please!)
  • Certain living accommodation (“Certain” being the key word!)
  • Health screening and medical check-ups (Eye tests are included!)
  • And even a prize for suggesting a good idea!

All the above payments and benefits are potentially tax free, and if utilised to the best extent this can help to incentivise employees.

I hope you have been captivated by Vol 1 … Please stay tuned for Vol. 2 in the coming weeks, for more detail on the above.

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