Misc other benefits

Misc other benefits

Misc other benefits
A selection of other expenses/benefits that may be of interest is listed below.

Pension advice
Pension advice is allowable up to £500 in value per employee. If an amount exceeds this, only the difference would be a taxable benefit. There are two conditions:
•    The advice or reimbursement must be connected to a scheme that is available to all employees and not just restricted to senior employees
•    The advice is specific to an employee due to their ill health or they are within five years of being able to access their pension. So if that is 57, the qualifying age is 52.

Relocating costs
A business may contribute up to £8,000 towards the costs of relocating for its employees. It is unlikely that HMRC would permit any claim for payment to someone connected to a director-shareholder.

These are called ‘qualifying’ costs and include:
•    The costs of buying or selling a home, including stamp duty
•    Moving costs
•    Purchasing certain things for a new home
•    Bridging loans used to immediately relocate while the previous home is being sold

These are only qualifying costs when:
•    A new employee is moving area to start a job with you
•    An existing employee is changing their place of work within your organisation
•    The employee’s new home is reasonably close to the workplace, and their old home is not
•    The costs are paid before the end of the tax year, that’s after the one in which the employee started their job. So if they started in May 2023, these must be repaid by 5 April 2024
 

Retraining costs
A business may pay for retraining for an employee or former employees to help them obtain further work. The conditions that must be satisfied for this are detailed here. Any consideration of significant cost of further education should also consider the guidance in HMRC’s employment manuals.






 

 

 

 

 


    • Related Articles

    • Trivial Benefits & Staff parties

      Trivial benefits A company may treat its staff to trivial benefit subject to specific rules: Maximum £50 per benefit (including VAT) No more than £300 in a tax year (05 April) per director Must not be in cash Must not be a reward for work done ...

    • State Pension and benefits entitlement - Voluntary NIC

      Your entitlement to the basic State Pension and certain bereavement benefits could be affected if there are gaps in your National Insurance contributions record. You may want to consider filling in the gaps by paying voluntary National Insurance ...

    • Tax Free Benefits - How to maximise profit extraction

      You may extract value from your business via certain benefits without a personal tax liability. However, the rules surrounding these benefits must be carefully followed to ensure they are allowed. Some only apply to companies and may not apply to ...

    • Benefits in Kind, P11D, and PAYE Settlement Agreements

      Benefits in Kind, P11D, and PAYE Settlement Agreements (PSA) Employers often provide employees with non-cash benefits, known as benefits in kind (BIK). These can range from company cars to private medical insurance and are subject to tax and National ...

    • Key-man insurance

      Key-man Insurance Premiums for a key-man policy are to compensate the company for the loss of profits due to the death, critical illness, accident or injury of key personnel. If a claim is made, any proceeds paid out under the policy will be taxed as ...