This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Alternative ways of paying staff tax-efficiently

Shared from Tax Insider: Alternative ways of paying staff tax-efficiently
By Jennifer Adams, June 2024

Jennifer Adams looks at some alternatives to rewarding an employee with a pay rise or a bonus. 

Despite the reduction in National Insurance contributions (NICs) in Spring Budget 2024, more employees are paying tax at higher rates on their earnings due to the freezing of tax thresholds. Some may find that any pay rise or bonus attracts additional tax and NICs such that the net pay increase is minimal.  

Benefits packages 

However, it is possible to put together a package of non-cash tax-efficient benefits to reward employees, so that they are better off. Such benefits can include employee parking, staff discounts, holiday buy back, birthday vouchers, Christmas gifts, help with additional homeworking costs, employee suggestion schemes (where tax and NICs-free cash rewards are given to employees to share their ideas, suggestions and solutions to enhance the operations, processes,

This is one of our 2599 Premium articles

To see this article in full and unlock access to our complete library of 2599 articles click 'subscribe & unlock' below:

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee