As an employer, one of your key goals might be to attract and retain the best staff. Employee benefits, or sometimes called ‘benefits in kind’ are often a good way to increase the retention and moral of your workers.
Benefits come in many forms depending on the size and sector of the business. Some of the most common benefits include company cars, bicycles and medical treatments.
Some of these benefits are tax-free, often in return for part of your staff’s salary.
2017/18 has seen some changes to certain benefits and the tax implications involved.
Here’s an overview of some of those tax changes.
Salary sacrifice schemes
As of 6 April 2017, tax and national insurance savings for employers and employees for most salary sacrifice schemes have been removed.
All benefit arrangements in place before April 2017 will be protected for up to 1 year while cars, accommodation and school fees arrangements will be protected until 2021.
New rules don’t apply to benefits such as pension contributions, subsidised meals and medical treatments.
Childcare vouchers will not be available to new users from April 2018.
However, parents can switch to the government’s tax-free childcare scheme from 28 April 2017.
Eligible parents who open a tax-free childcare account will receive £2 for every £8 they pay in.
The maximum top up is £2,000 per child per year or £4,000 for children with disabilities.
If your business is offering these benefits then it is important to keep in mind that the following changes will apply to any arrangements made after 6 April 2017.
If you have any further questions about benefits in kind, contact us today by completing the form on our website.
Alternatively you can call us on 020 8977 0905 (Hampton Wick Office) or 01932 855644 (Weybridge Office) to speak to an adviser.