Making the most of fringe benefits
More than just a salary
While pay rises are normally popular, they aren’t the only way to reward employees and directors. A fringe benefit is essentially any type of non-monetary compensation, and can be anything from pension provision to medical cover, a company car or the use of a company yacht.
The tax rules for fringe benefits change frequently, so it is important to use up-to-date information and plan ahead. Just because a benefit is, or is not, tax efficient this tax year, the situation may change in the future. For example, recent changes include an increase to the percentage surcharge applied to diesel company cars and the introduction of an exemption for employer-provided pension advice.