Employee Benefits Articles

Tax-free trivial benefits

There is a benefit in kind (BiK) trivial exemption that applies to small non-cash benefits like a bottle of wine, or a bouquet of flowers given occasionally to employees or any other BiK classed as 'trivial' that falls within the exemption. By taking advantage of the exemption employers can simplify the treatment of BiKs whilst at the same time offering a tax efficient way to give small gifts to...

EMI Options – Business Asset Disposal Relief

Business Asset Disposal Relief Earlier this month we posted a reminder about Business Asset Disposal Relief (BADR) for Capital Gains Tax, what it applies to and how it may be claimed . The relief is not new – it was known as Entrepreneurs’ Relief for tax years up to 2019/20. The name change did not affect the operation of the relief and to re-state, it can apply to the sale of: The whole or part...

Claiming for mobile phones

When an employer incurs costs for the provision of mobile phones to employees it is important to understand the correct tax treatment of these expenses. This includes costs for phones provided to employees and reimbursement of employee’s own phone costs. As a general rule, the provision of one mobile phone to a director or employee for private use is exempt from tax and NIC reporting...

PAYE settlement agreements

A PAYE Settlement Agreement (PSA) allows employers to make one annual payment to cover all the tax and National Insurance due on small or irregular taxable expenses or benefits for their employees.

On your bike – cycle to work exemption

The Cycle to Work scheme was introduced over 20 years ago to help promote the use of healthy ways to commute to work using an environmentally friendly mode of transport.

The scheme allows employers to provide bicycles and cyclists’ safety equipment

Exempt loans to employees

An employee can obtain a benefit when provided with an employment-related cheap or interest-free loan. The benefit is the difference between the interest the employee pays, if any, and the commercial rate the employee would have to pay on a loan

Car fuel benefits for employees

The car fuel benefit rules only apply to company cars that attract a car benefit tax charge. This means the rules do not apply to fuel provided for use in an employee’s own car.

However, employers can pay up to 45p per mile for company related trips

A reminder of trivial benefit rules

Trivial benefits in kind (BiK) rules provide an opportunity to give small rewards and incentives to employees. Learn more!

Tax treatment of incentive scheme awards

Some companies use incentive award schemes to encourage their employees in various ways. For example, to sell more of their own goods and services. The award can include cash-based, vouchers or other gifts.

Where an employer meets the tax payable on

Make the most of tax-free trivial benefits

Trivial benefits in kind (BiK) exemption applies to small non-cash benefits and can provide small rewards & incentives to employees.

Tax treatment of incentive award schemes

Companies use incentive award schemes to encourage their employees in various ways. For example, to sell more of their own goods and services. The award can be in various forms including cash, vouchers or other gifts.

Where an employer meets the tax

Exempt beneficial employee loans

An employee can obtain a benefit when provided with an employment-related cheap or interest-free loan. The benefit is the difference between the interest the employee pays, if any, and the commercial rate the employee would have to pay on a loan

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