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Tax Free Employee Benefits

We are often asked how employees can be rewarded without tax implications. Most benefits in kind are taxable on the employee, however, there are some that are not. Although, obviously limited in number, there are some that are worth consideration and what follows is a checklist of the main tax free benefits:

• Pension contributions

• Parking facilities

• Job-related accommodation

• Childcare vouchers

• Crèche facilities (if available to all)

• Free or subsidised canteen meals

(if available to all)

• In-house sports facilities (if available to all)

• Works buses or subsidised public

bus services

• Non-cash gifts – not from employer – up

to £250 per annum

• Business mileage payments

• Subsistence and travelling for business


• Directors liability or professional

indemnity insurance

• Eye care tests/glasses for computer

screen use

• One health screening or medical checkup

per year

• Mobile telephones

• Cycles and cyclist safety equipment

• Annual staff parties – up to £150 per

annum per person

• Company van where private use is


• Interest on loans to employees up to

£5,000 (£10,000 from 6 April 2014)

• Removal expenses – up to £8,000

per move

• Long service awards for 20 years

service or more (£50 per year of service)

• Additional costs of working from home

(£4 per week max)

• Personal incidental overnight expenses

(max £5 per night in the UK and max

£10 per night overseas)

• Training costs

It is important that advice is taken regarding the specific rules for each of the above to apply. Please contact us for more details if this is of interest.

Peter Dawson


Tax Free Employee Benefits