This is our take on the traditional ‘Twelve Days of Christmas’ – twelve ways to pay less tax for you and your kin.
At this time of year you may be reviewing salary packages for yourself and your team. You may be considering giving someone a pay increase in cash but, remember, this will give you an extra employer’s National Insurance bill on top of the wage increase. The team member will also pay tax and employee’s National Insurance on the extra payment.
Here are 12 ways to make a payment to you or your team without incurring a tax or National Insurance bill. They are not as tuneful as the Twelve Days of Christmas, but they do save more tax:
- Provide free bicycles and cycle equipment for travelling between home and work
- Provide a free firm’s mobile phone
- Make a payment to the employee’s pension scheme
- Provide a free parking space at or near the place of work. This could be in a public car park and not just outside your premises
- Provide a free health screening session. It could save someone’s life!
- Provide childcare vouchers
- Provide free or subsidised meals in a works canteen
- Provide free director’s liability of professional indemnity insurance
- Provide free or pay for eye tests and corrective glasses for people working with VDUs
- Make a long-service award in kind to employees employed in the business for more than 20 years. The amount is £50 per year
- Provide welfare and counselling services
- Provide a free staff party (or parties) costing up to £150 in total per person per year
You need to make sure you deal with the paperwork correctly. Please contact us for advice if you are thinking of providing any of these benefits to your team or yourself.