Summer is fast approaching and there is still time to ditch some of those pounds. In this case we look at how you can encourage your employees to take advantage of the tax system by staying fit for work. Find out more in our article.
Staying fit and healthy is undeniably in the best of interest of both you and your employees. The most common causes of workplace absences are stress, anxiety, depression and back injuries. It is increasingly difficult to get a good work-life balance and many employees struggle to find time to partake in physical activity. However the tax system now encourages employers to help their employees get fit through a number of tax breaks.
Workplace Sport Facilities
Your employees are more likely to use on site sport facilities either before, after or during their working day. If you provide this facility there is no benefit-in-kind charge to them if:
• They are used wholly or mainly by people whose right to use the facility is employment related
• The facilities are available generally to the employer’s employees
• The facilities are not available to the public
You can choose to provide your employees with a membership to a local gym or sports club. However they will be subject to a benefit-in-kind charge. If you give your employee extra money to fund a gym membership this is treated as extra salary and is subject to PAYE and National Insurance Contributions.
Your employees can have annual health screening and medical check-ups tax free. This can prove effective in the long term for you as they will take less days off due to ill heath. You can also cover up to £500 of medical treatment for an employee and they won’t be subject to a tax charge.
Cycle to Work
You might have heard of the Cycle to Work Scheme but what is it? And how can it benefit you and your employees?
In a nutshell it is designed to help your employees loan a bike to travel to work as a tax-free benefit. After the loan period is over your employee can buy the bike without paying tax.
Not only is this good for the environment and good for your employees but it can also save you money. The cost of the bikes and safety equipment can be treated as capital expenditure meaning you can claim capital allowances. If the loan of the bike is offered as a salary sacrifice you can reduce your Class 1 NIC.
Overall, there are a number of ways you can reduce the tax bill for you and your employees.
Ultimately keeping everyone happy and hard at work.
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