50 Tax Breaks For Employees

People often say to us, that when they’re employed the tax breaks for employees to exploit aren’t as good as those available for the self-employed. That is true, but those breaks were originally intended to compensate self-employed taxpayers for the risks they take and for the benefits of employment that they don’t enjoy. However, there are some tax breaks out there for employed taxpayers and they can also participate in tax allowances available for everyone. So let’s take a look.

Tax Breaks For Employees

There are far more allowances for those employed people than you’d think, below our tax advisors have compiled are a few examples;

1. Tax-free trivial benefits, unlimited £50 per time treats;
2. No tax due on free or subsidised meals in a staff canteen;
3. A staff party up to £150 per year, tax-free;
4. No tax on the provision of a free parking space;
5. Tax-free taxi when required to work late;
6. Transport home in the event of being let down by your car share;
7. No tax due on the provision of a company bike;
8. Contributions to costs of working from home paid tax-free [£4 per week allowed without detailed workings]
9. Approved mileage rates and the ability to claim the full tax-free amount if the employer is not that generous;
10. Tax-free incidental expenses when working away [£5 per night in the UK, £10 elsewhere];
11. Relocation expenses, up to £8,000, free of tax;
12. Free long service award gifts;
13. No tax on gifts received by virtue of employment from 3rd parties [up to £250];
14. Reasonable gifts [eg Wedding Gift];
15. Tax-free training in an educational establishment;
16. Retraining courses;
17. Tax-free mobile telephone;
18. No tax on job-related accommodation;
19. Tax-free payment for professional and union subscriptions
20. Free workplace childcare;
21. Free onsite sports or recreational facilities;
22. Tax-free childcare vouchers;
23. Free eye tests and treatment up to £500 per year;
24. Bonus payments into an Employee Benefit Trust;
25. Tax relief on payroll giving scheme;
26. Tax-free termination payments on death, and injury;
27. Lump-sum payments to pension schemes on termination;
28. Tax-free ex-gratia payments on termination up to £30,000;
29. Share incentive plans;
30. Approved share option schemes;
31. Enterprise management incentives;

Other Tax Breaks For Employees To Enjoy

Employees can save tax in other ways too, here are a few more;

1. Charitable donations, higher rate relief under gift aid;
2. Tax relief on pension contributions;
3. Zero rate tax on savings income up to £2,000;
4. Zero rate tax on dividend income up to £2,000;
5. ISA for cash and shares;
6. Lifetime ISA, with a £1,000 bonus each year;
7. Junior ISA or Child Trust Fund for children;
8. Enterprise Investment Scheme, 30% tax back on qualifying investments;
9. Seed Enterprise Investment Scheme, 50% tax back on qualifying investments;
10. Venture Capital Trust, 30% tax relief;
11. Trusts for inheritance tax planning;
12. Capital Gains Tax annual exemption;
13. Principal private property relief for capital gains tax;
14. Letting relief for capital gains tax;
15. Annual gift allowance for inheritance tax [£3,000];
16. Small gift allowance for inheritance tax;
17. Transfer of personal allowance for married [and equivalent] couples;
18. Married couples allowance;
19. Rent a room relief;

So even if you think you can’t benefit from an accountant, some of these might apply – get in touch if you want further help.