You may want to reward staff from time to time for numerous reasons. Cash bonuses sound great but in reality, after-tax, especially for high earners, there’s not much left to them. This is where your great accountant comes into action and tells you all the tax-free rewards you can offer them to keep your employees sweet without the bitter tax.
The following are tax-free benefits you can offer your employees:
Buy a mobile phone, even the latest iPhone for them to use personally is absolutely fine - just ensure that the company owns the phone and return it when they leave.
Upgrade their laptop - Let them know that you’re upgrading for their performance/work as a bonus. Outdated and old laptops can also impact productivity.
Suggestion scheme - you can reward employees up to £5k cash (completely tax-free) for giving financially beneficial suggestions, which would usually fall outside their typical day to day duties. This can be a nitty-gritty area, so get in touch if you need more guidance.
Give them unlimited £50 non-cash vouchers for any occasion (birthdays/Christmas/new years) - just make sure it’s not work or performance-related
Set up an electric car salary sacrifice scheme - employees can lease a car through salary sacrifice and pay for it before tax. For higher and additional rate taxpayers, this can save the employee between 42-67% tax!
Cycle to work scheme - similar to the electric car scheme but for bicycles and accompanying equipment
L&D budget - set up an L&D budget for your staff to choose from. This includes courses, books, apps, events or anything in between. Sunlight.io is a great tool to help you set it up.
Access to EAP (employee assistance programmes) and mental health coaching is becoming very popular, and tools such as Spill or HealthAssured are great.
Mindfulness apps such as Calm is also a great way to show your employees that you care.
Coaching/training sessions
Perks and discount platforms
Free or subsidised meals at the office
As always, every business is unique so needs to be assessed individually. Contact us if you need any support on implementing employee benefits.
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