An alternative tax-efficient way to reward loyal staff

    The tax legislation includes an exemption for staff long-service awards, but the qualifying conditions are tough and the tax-free reward isn’t generous. Is there a better alternative?

    Income tax - Employment income - Expenses and benefits - II. Benefits in kind - Non-taxable benefits - 27275

    Certain benefits, usually made available to all employees, are exempt from charge, as shown in the table at ¶27280. For trivial benefits not exceeding £50, see ¶27410.

    Income tax - Employment income - Expenses and benefits - II. Benefits in kind - Non-taxable benefits - Equipment and communication - Home internet access - 27327

    The tax status of the provision of internet access at the employee's home for work purposes depends on the nature of the arrangements with the provider, and is summarised in the table below....

    Employment taxes - Therapy exemption - minor benefits

    Therapy exemption - minor benefitsThe employment income tax legislation includes exemptions for so-called minor benefits. This shouldn’t be confused with trivial benefits - there are separate...

    Tax-exempt commuting

    Normally if a business pays the commuting costs for a director or employee it counts as a taxable benefit in kind. However, a tax and NI exemption applies in some circumstances. When does it...

    Tax-free therapy now allowed

    Tax-free therapy now allowed..Minor benefits. Tucked away in the corner of the employment income tax legislation is an exemption for so-called minor benefits. This isn’t to be confused with...

    Life insurance - getting your company to pay

    Life insurance premiums are necessarily expensive but some are cheaper than others. However, you can cut the cost further by getting your company to pay. How do you set this up?

    HMRC misleads employers on trivial benefits

    For the fourth time in a row HMRC has included advice about trivial benefits in its Employer Bulletin, it says to clarify matters. In reality it’s back pedalling on its previous erroneous advice about...

    HMRC tweaks guidance on tax-free phones

    HMRC tweaks guidance on tax-free phones..Two tax-free phones. HMRC has recently confirmed that it’s possible for an employee or director to have two tax-free mobile phones where one of them...

    Avoiding problems with trivial benefits

    The exemption for trivial benefits is very useful. However, HMRC has recently reminded employers to ensure what they are providing actually qualifies under the rules. How can your clients avoid problems?