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Not many people realise but there is an extensive list of benefits and payments that an employer can give to an employee without having to pay income tax or national insurance on and they do not have to be reported on a P11D.

It could be argued that some are not really benefits, and are actually just to enable the employee to do their job, but take a look at some of the items from the list below as there may be one or two that you could make use of:
  • An annual party – usually at Christmas – or similar functions which cost no more than £150 per head. Read our blog here for further details on this one.
  • Board and lodging for a Carer.
  • The costs of purchasing assets from employees – assuming it is done at a market rate
  • The employer funding certain kinds of independent advice in relation to the employee shareholder agreements is not taxable in the hands of the employee.
  • Disabled employees are not taxable on the benefit of the private use of equipment provided to enable them to work for the employer (eg wheelchair or hearing aid).
  • Health-screening and medical check-ups – up to one of each per year.

  • The provision of job-related living accommodation in certain circumstances – this is usually quite specific – think lighthouse keeper living in a lighthouse or vicar living in the vicarage.
  • Free or subsidised meals provided in a staff canteen – again must be available to all staff.
  • The cost of necessary medical treatment abroad where an employee becomes ill or suffers injury while away from the UK in the performance of their duties. The insurance cost for such treatment would also be tax free.
  • The provision of one mobile phone to an employee unless any of these can be converted into money by the employee. If the employer pays cash to an employee to use their own mobile that is taxable.
  • The provision of a car, motorcycle or bicycle parking space at or near the employee’s place of work.
  • Where an employee works regularly at home, under agreed flexible working arrangements, an employer may pay up to £4 per week, £18 per month or £216 per year without supporting evidence of the cost to cover the use of home as office. More can be paid, but HMRC will require supporting documentation to pay higher amounts tax free.
  • Pension advice to the employee up to £500. This should be available to all employees generally, or to those at a particular location (although it may be limited to those nearing retirement through age or ill health).
  • Subject to numerous conditions, moving costs of relocating for a job of us to £8,000 may qualify for exemption.
  • Sports facilities provided to employees and members of their families and households – these must be available to all employees, not a restricted group, and wouldn’t include gym membership.
  • The benefit of welfare counselling made available to all employees is exempt from tax (excluding some specific counselling).
  • The provision of work-related training made for the employee by the employer.
  • The cost of transport which an employer provides to take an employee home is allowable, but is limited to:
  1. travel after 9pm
  2. employee usually travels in shared vehicle, which is unexpectedly not available
  3. provision of a works bus
  4. employer subsidises public transport
  5. benefit of bicycles and/or cyclist’s safety
  6. additional costs caused by strikes or other industrial action (such as hotel accommodation near place of work or additional travel costs)
  7. assistance with the cost of travelling between home and work for disabled persons

If you could make use of these then implement them to assist your team.