Tax Free Staff Perks to be Reviewed

Date: 27/12/12

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.

Stuart Hinnigan FCA CTA

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...

Read More

Share this article:

0 Comment

Nobody has commented yet. Why not add one?

Add your Comment

We have the ability to edit and/or delete posts and comments. Links should be relevant to the topics. Please note all comments are subject to review before inclusion.

Register to comment

Arrange your free consultation

We offer a free, no obligation consultation with one of our experienced advisors to discuss all your business and accounting requirements. Complete the request form and one of our friendly advisors will be in touch shortly to arrange your consultation.

Arrange Now

Memberships & Accreditations

When appointing a firm of accountants it is important to check that they are appropriately registered and regulated.

Our clients can be assured that Scott & Wilkinson is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities and is an authorised training partner.