At this time of year you may be reviewing you and your team’s remuneration packages.
You may be considering giving someone a pay increase in cash. You need to remember this will give you an extra employer’s National Insurance bill on top of the wage increase. Your team member will also pay income tax and employee’s National Insurance on the extra payment.
Here are 10 ways to reward your team without incurring a tax or National Insurance bill. They’re also all deductible for Corporation Tax purposes.
1. Provide free bicycles and cycle equipment for travelling between home and work.
2. Provide a free firm’s mobile phone.
3. Make a payment to the employee’s pension scheme.
4. 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.
5. Provide a free health screening session. It could save someone’s life!
6. Provide childcare vouchers.
7. Provide free or subsidised meals in a works canteen.
8. Provide free director’s liability or professional indemnity insurance.
9. Provide free or pay for eye tests and corrective glasses for people working with VDUs.
10. Provide welfare and counselling services.
You need to make sure you deal with the paperwork correctly. Pease contact me for advice if you are thinking of providing any of these benefits to your team or yourself.