Tax Planning Idea! Employee Reward Packages
Employee incentives such as bonuses, non-cash benefits such as private medical insurance and pension contributions can be a good way of rewarding and incentivising staff. Some are more tax efficient than others, and the right package can lead to improved retention and incentivisation of key staff. There are several tax-free benefits such as mobile phones and pension salary exchange arrangements which can motivate staff. In addition, ‘trivial benefits’, such as non-cash vouchers worth £50 or less, can be given to employees tax-free, providing they are not a reward for service.
As always, the key to successful tax planning is to seek advice as early as possible.
If you would like more information or would like to discuss your tax affairs in more detail please don't hesitate to contact our Tax Partners, Steve Crompton or Lucy Williams on the details below: