1. Free Medical Check-ups
Usually staff medical insurance is taxable and must be reported to HMRC through P11d. However, there is a specific exemption that allows the employer to pay for employees to have private medical check-ups without any tax implications on the employee. So, the following are exempt from tax:
If your employees use screens or monitors at work, they are eligible for tax-free eye tests, contact lenses and glasses.
Insurance and treatments that cover any work-related medical issues.
Medical treatments £500 or less if they are part of a return-to-work plan.
One general medical check up per every tax year.
Overseas medical insurance and treatments for employees working abroad.
2. Free Meals
You can offer your employees free or subsidised meals as long as:
The meal plan is offered to all employees
The meals are given on the company premises or in the staff canteen
The meals are of a reasonable size
3. Long Service Award
You can provide your staff tax free long service award if all of the following apply:
they’ve worked for you for at least 20 years
he award is worth less than £50 per year of service
you haven’t given them a long-service award in the last 10 years
For example, you can give a non-cash award with a value of up to £1,000 for 20 years’ service.
4. Tax Free Relocating costs
If your employee lives more than a reasonable commuting distance and they move closer to work, you can pay them up to £8,000 tax free amount to cover relocating expenses like moving costs, stamp duty, legal fees, and new furnishings.
5. Tax Free Award
You can pay your staff tax free income for suggestions that benefit your business. There are two kinds of awards:
Encouragement Awards are provided for good suggestions, or to reward your employees for special effort and are tax free up to £25.
Financial Benefit Awards are provided for suggestions that will save or make your business money. These awards are tax free up to £5,000.
Please see the eligibility criteria for tax free awards here.
6. Tax Free Vouchers
Any non-cash vouchers up to £50 to your staff may be exempt under the trivial benefit rules. Please be aware that if the voucher exceeds £50 (even a penny), you will need to treat them as taxable benefit will be required to report these to HMRC on a P11D form.
Please note that cash vouchers to your staff would need to be put through the payroll and would be subject to tax and National Insurance.
7. Tax Free Gifts
Trivial gifts to your employees are tax free proving these are non-cash up to £50, not part of their contract or reward for performance.
Any cash or voucher exchangeable for cash will be treated as trivial gifts and HMRC will tax these as earnings and will be subject to normal taxes.