Making the most of fringe benefits

Mor than just a salary

Based on HM Revenue & Customs (HMRC) statistics, private medical and dental cover is by far and away the most popular taxable benefit provided to employees and directors. Perhaps no surprise given how easy this benefit is for employers to arrange, but there is a whole range of well-being benefits that employers can also provide given a bit more effort.

The second most popular taxable benefit is the company car, although these can easily be very tax inefficient. This is borne out by HMRC statistics which show that most company cars are diesels, and that cars with low emission rates are nowhere as prevalent as would be expected given the tax savings they offer over higher emission vehicles. The company car tax changes being introduced from 6 April 2020 will make the switch to a lower emission car even more attractive.

Ross Welland

Tax Director