The list of company benefits that can be provided tax-free to employees is quite short. However, some of the benefits that can be provided include the following:
- Meals: Free or subsidised meals in a staff canteen where meals are provided for all employees on a reasonable (not overly extravagant) scale. The exemption does not apply where free or subsidised meals are provided as part of salary sacrifice or flexible remuneration arrangements.
- Hot drinks and water at work.
- Mobile phone: There is generally no charge to tax where for a mobile phone is provided to an employee.
- Workplace parking for an employee’s car or motorcycle, or facilities for parking bicycles at or near the employee’s place of work.
- Annual / Christmas parties: These must be open to all employees and cost less than £150 per person.
- Medical insurance or medical treatment for employees working abroad as well as one annual medical health check and / or health-screening assessment.
- Long service and suggestion scheme awards, within certain limits.
There is no requirement to pay tax on benefits and expenses covered by concessions or exemptions and they do not need to be included on a tax return.
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