UK start-ups payroll and accounting advice: What benefits and expenses are tax exempt?

UK start-ups payroll and accounting advice: What benefits and expenses are tax exempt?

If you’re starting your own business, payroll affordability could be one major issue causing worry about ongoing operations.

Retaining the best people in your business isn’t always about paying top dollar, though. There are a variety of benefits/expenses that could be offered new hires and directors to keep them on board during the rocky first months of trading. This blog post explores just some of these:

Just some of the tax-deductible employee perks and benefits you could offer your UK workforce

– Mobile phones and laptops are essential to the smooth operations of any business. Offering these as perks to employees can be a deductible expense if you run your finances on cash basis accounting with HMRC. Monthly mobile costs are also allowable.

– Uniforms and branded workwear are essential for some businesses, such as restaurants and care homes. However, there is a wide variety of branded workwear out there to suit most business environments. You could avoid the endless fashion parade that’s such a feature of some workplaces if you opt for branded uniforms for all employees. What’s more, this solution helps raise the profile of your business and won’t require a massive cash input at the start of trading.

– Bus or train travel to and from work.

– Car mileage allowance for allowable employee journeys.

– Employee training courses, like refresher sessions or training at the point of start-up, count as deductible expenses and ensure your new hires are more employable for the future.

– Every little cost-saving helps, so free tea, coffee, water and juices for all employees are also a regular cash saving that will be appreciated by every team member. You could extend this by providing free fruits, breakfast cereals or daytime snacks. All of these are allowable business expenditure, and they will help increase staff loyalty while reducing any need to leave the office or business site during lunchtime periods.

What other benefits in kind can I provide to my employees?

In honesty, the line up of benefits you can provide to your employees is endless, but there are some benefits you’ll need to speak with HMRC or a professional accountable about. These include:

– Free healthcare insurances
– Company cars and fuel
– Free childcare

If you’d like to find out more about allowable expenses and the benefits in kind you can offer your UK employees, why not get in touch or give SQK Accountancy a call today? Our experts will be happy to guide you in this matter and can also provide valuable corporation tax, PAYE and national insurance advice, VAT information, and much more…..

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