Benefits from employers exempt from income tax

Question 1

Canteen

Answer 1

Use of free/subsidised on-site canteen (canteen must be available to all employees)

Question 2

Sports facilities

Answer 2

Sports facilities available to employees but not the general public

Question 3

Childcare related

Answer 3

• Workplace nurseries/childcare
• Vouchers for approved childcare:
  
  • for those already in a scheme at 6 April 2011, up to £55 per week is exempt
  • for those joining from 6 April 2011 to 4 October 2018, exemption is £55 per week for basic rate taxpayers, £28 per week for higher rate taxpayers, £25 per week for additional rate tax payers from April 2013

Question 4

Health related

Answer 4

• One each per year of health screening assessment and medical check-up
• Glasses and eye tests for employees who use VDUs
• Up to £500 p.a. for recommended medical treatment to help the employee return to work

Question 5

Public transport

Answer 5

• Use of bicycles (and cycling safety equipment) if available to all employees
• Work buses and subsidies to use public bus services
• Travel expenses when public transport disrupted, late night journeys and where car sharing arrangements break down

Question 6

Cars

Answer 6

• Vehicle battery charging facilities at or near the place of work where the vehicle is used by the employee and the vehicle is not a taxable car or van
• Provision of car parking space at/near place of work

Question 7

Pension

Answer 7

• Pension advice and associated tax planning available to all employees up to £500 per tax year (above which the full amount is taxable)
• Employer’s contributions into a registered pension scheme

Question 8

Phone

Answer 8

Mobile phone (one per employee for private use)

Question 9

Training

Answer 9

Work related training courses

Question 10

Social events

Answer 10

Up to £150 p.a. per head for social events. If an event costs more than £150 the full amount is taxable, not the excess.

• The party must be an annual event in order to qualify for the exemption
• Where there is more than one event in the year, the total cost of events less than or equal to £150 will be exempt and the other events will be taxable

Question 11

Non-cash

Answer 11

• Non-cash long service awards for greater than or equal to 20 years’ service, maximum £50 per year of service
• Non-cash gifts from third parties (up to £250 p.a. per donor) or entertainment provided by a third party (no limit)

Question 12

Staff suggestion

Answer 12

Awards of up to £5,000 made under a staff suggestion scheme

Question 13

Removal

Answer 13

Removal expenses up to £8,000

Question 14

Work from home

Answer 14

Payments towards costs of working from home (need supporting documents if greater than £6 per week)

Question 15

Personal incident

Answer 15

Personal incidental expenses when working away from home up to £5 per night in the UK and £10 when working abroad. If the limit is exceeded the whole payment is taxable