Page 25 - PWM2025_APRIL EBOOK

BETTER BUSINESS

phone privately, without creating a Staff welfare
tax charge”. However, an employer Lastly, Thornley notes “that there
can provide only one SIM card and/ are other ways in which employers
or phone per employee and the con- can help with the health and wellbe-
tract for the card or phone must be in
the employer’s name. ing of their workforce without creat-
Again, Thornley reminds that the ing tax problems”.
phone must not be provided as part Here she outlines that employers
of a salary sacrifice arrangement else can provide one health screening or
the tax-free benefit is lost. one medical check-up per employee,
per year, tax free. Similarly, employ-
Long service awards ees can be provided with free flu jabs
Staff are more mobile and tend to either on site, or via a voucher for the
move between employers, but that employee to receive a jab at a phar-
doesn’t mean that some stay for the macy.
duration. In this circumstance and And where staff use computer
employer can give an award to mark screens, employers can pay for an eye
long service can be made to staff tax- test. Employers can also contribute
free who have a minimum of 20 towards the cost of any glasses or
years’ service. With an allowed value
of up to £50 per year of service, contact lenses needed.
Thornley says that “there is the Summary
potential to make a gift of up to
£1,000 once an employee reaches There is, despite tightening of the
this milestone”. rules, much that an employer can do
Crucially she highlights that the to offer extra benefits to staff without
award cannot be cash, must be some- either raising the hackles of HMRC
thing tangible, and not something or increase the tax burden on
which can easily be exchanged for employees. As ever, though, the key
cash – although vouchers which can is to ask staff what they want and to
be exchanged for goods are allowed. take good advice.
Given the potential value of the Understand employee priorities
award, it makes sense to consult with
nothing exemption; if the cost of a gift exceeds £50 then the full value is tax- the individual in question before pur- Use surveys to identify what employ-
able under the usual benefit in kind rules”. chase. ees value most. Younger staff might
She also says that directors and office holders of small or family businesses prioritise flexible working or eco-
must also take care: “Where the company is owned and controlled by five or Big business benefits friendly perks, while older employ-
fewer individuals, these individuals – together with any employees related For the larger business able to cope ees may focus on pension
to them – can’t receive more than £300 of trivial benefits within any given with the administration costs, enhancements. Leverage tax-effi-
tax year.” Thornley points to some useful tax- cient options Implement salary sacri-
free benefits around workplace can- fice schemes for items such as
Home working allowance
teens and workplace nurseries which pensions and childcare vouchers.
If there’s one thing that Covid along with technology did, is that it acceler- could help to encourage staff to come These should tie in with government
ated the move to more staff working from home for some or all of the week. into the workplace. policies and offer significant savings.
Where employers have employees in this situation, then, says Thornley, it is On the first she says that “employ- Offer low-cost, meaningful ges-
possible to pay them a simple, flat rate payment of £6 per week without cre- ers can provide free or subsidised
ating a tax liability to cover any additional costs of working from home. meals tax-free provided such meals tures Trivial gifts and profit-sharing
bonuses can foster goodwill without
But to qualify for the payment, she says that “employees must be working are made available to all staff – or all
regularly from home under a homeworking arrangement with their staff at a given location – and pro- overburdening budgets.Promote
employee’. She adds that “this must be formally agreed – just taking work vided at the employer’s premises or financial education Help employees
home in the evenings from time to time does not count”. in a workplace canteen off-site.” maximise the benefits available to
An approved workplace nursery is them by offering access to financial
Mobile phones clearly a substantial undertaking, but advice or education. Stay adaptable
Something else that Thornley says employers can give staff tax-free is, Thornley thinks it could be an enor- Continuously review benefit offer-
subject to a couple of conditions, a mobile phone. Provided these conditions mously popular benefit which may ings to ensure they remain competi-
are met, she says “the rules are pretty generous as the employee can use the both attract and retain talent. tive and aligned with tax changes.

www.printweekmena.com April 2025 PrintWeek MENA 25