Employee benefits and incentives
- An employment package can be structure to maximise low tax and tax free benefits.
- Employee benefits do not need to be tax-free in order to bring an advantage to employees: an employer can bulk purchase and buy in benefits at a substantial discount compared to the cost to an individual if he made a similar purchase personally.
- The employer will qualifie for tax relief whether a benefit is tax-free or subject to income tax and National insurance.
- An employee benefit trust may be used to provide a range of different benefits.
- Share schemes have the dual advantage that they motivate the employee to add value to the company as well as acting as a tax-efficient way to reward employees
Which benefits?
Our list of Tax-free benefits in kind and perks illustrates the most popular tax-free benefits available.
Also consider Employment car ownership schemes (ECOS) or investigate the new range of tax-free zero emission vehicles, these are explained in more detail in our guide to Company cars.
It is all change for Pensions over the next few years and the changes will affect all employers as well as higher paid earners, see Pensions planning for directors.
Share schemes can be one of the most tax efficient and successful ways to reward staff, see Share scheme basics
For assistance in designing an imaginative and tax efficient remuneration and reward package for employees and directors please contact us.
Further reading?
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