Tax Free Staff Perks to be Reviewed
The Government is to review tax-free perks which many employers offer to their staff.
Chancellor George Osborne has asked the Office for Tax Simplification (OTS) to carry out a review of workplace expenses to see if more tax should be paid.
This includes cheap fuel, Christmas gifts to staff from employers, subsidised food in staff canteens, discounts for staff on their employer’s own products and the £30,000 tax-free redundancy payout.
Offering these perks is an excellent way for employers to keep staff motivated, but many companies would be less inclined to continue doing so if tax was increased on them.
The Chancellor has ordered a review into these perks so it is too early to say what the outcome will be, but employers should be aware of these developments. In the meantime, any employers wanting to introduce office perks while the current system is still in place should seek professional advice to ensure they are compliant with existing tax legislation.
For further information please contact Stuart Hinnigan at the office.
Author: Stuart Hinnigan FCA CTA
Stuart’s career in accountancy began when he joined Preston based Moore and Smalley in 1994 following his graduation from Lancaster University. He qualified as a Chartered Accountant in 1997 and then chose to specialise in...
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