Pensions and Benefits in Kind

On top of their pay, you may offer your employee “perks” such as a company car, clothing allowance, relocation expenses, childcare vouchers and private health insurance, to name a few.

Some of these benefits will be taxable in the hands of the employee: that is, the employee will have to pay tax on the financial benefit of these perks.

As well as bearing the actual cost of these perks, the employer may also have to pay Class 1A National Insurance Contributions on the benefit in kind that is being provided

 As an employer, you may also contribute to a pension scheme on behalf of your employee.

Advertisements

Comments are closed.