This list is not necessarily exhaustive. Most of the benefits mentioned need careful attention to detail, and as ever you are cautioned not to take action without specific advice.

There are a large number of tax-free benefits in kind. The main ones are listed below.

• Grant, growth in value and exercise of shares in approved share option schemes;
• Free car parking at or near the place of work;
• Contributions to approved occupational or personal pension schemes;
• Mileage paid at Revenue Approved rates;
• Training courses provided (day release, sandwich courses etc.);
• Air miles obtained through business travel;
• Beneficial loans under £5,000
• Long service awards (20 years), maximum £50 p.a.;
• Staff suggestion schemes;
• Free or subsidised canteens available to all staff;
• Sports facilities provided on the employer’s premises;
• Crèche facilities provided on the employer’s premises;
• Staff uniforms;
• Provision of goods or services at marginal cost only (Pepper v. Hart 1993);
• Gifts from third parties up to £250 per source;
• Removal expenses up to £8,000;
• Health checks, screening and eye tests;
• Provision of a mobile phone (PDAs and Blackberrys etc are not classified as mobile phones);
• Annual staff parties where the total cost (of all events) is up to £150 (inc VAT) per employee;
• £2 per week for additional household costs associated with working at home;

In addition to the above other benefits that will also help to attract and retain high quality employees which do not have a tax or NI cost include:

• Flexible working hours;
• Longer holidays/part time working;
• Possibility of working from home.

back to leaflets menu