Benefits in-kind are non-cash compensation provided to employees. Most employee compensation in the UK is a mixture of cash compensation and benefits.
Benefits are either taxable or non-taxable, with taxable benefits reported to HMRC on an annual basis. Typical taxable benefits include company cars, private medical insurance, living accommodation and railcards for travelling to and from work. Tax-free benefits can be a good way to enhance remuneration packages for your employees with no additional cost to them.
As an overseas employer it can be difficult to understand which benefits are part of a normal remuneration package and when a potential employee might be ‘pushing their luck’. We will help you understand what employers are expected to offer and the tax implications of any benefits you provide. We can also help you to implement policies around benefits to protect you and your employees against unexpected tax surprises.