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How to pay less tax – Top 10 Tax efficient perks

Did you know that there are a variety of different perks that can be paid to employees that do not attract either a tax or national insurance charge?

All of the following perks are not taxable, but in all cases you still should keep records of the payments to enable you to demonstrate to HMRC that the conditions required by the provision of the benefit are being met.

Note that employees can include directors and family members.

  1. Private use of office equipment such as computers
    Conditions – the equipment must be primarily provided for work purposes and the private use be insignificant
  2. Provision of one mobile phone
    Conditions – only one! A second mobile phone would be taxable
  3. Parking spaces at or near work
  4. Work related training
  5. Long service awards
    Non – cash awards worth up to £50 per year of service to an employee with at least 20 years of service so long as you haven’t made another long-service award to the employee within the previous ten years
  6. Relocation costs
    Conditions – capped at £8,000 maximum
  7. Cheap or interest free loans
    Conditions – capped at £5,000
  8. Office parties
    Conditions – Not to exceed £150 per person per tax year
  9. Contribution towards the costs of working from home
    Conditions – Up to £4 per week if the employee has a home working agreement
  10. Authorised mileage payments for business journeys by car
    Conditions – different rates are allowable for mileage up to and exceeding 10,000 miles per tax year.

The above is just a rough guide – please consult your accountant or the HMRC web site for detailed guidance.

Accountant Romford – Transform Accounting – The Essex Accountant

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