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, from 6 April 2020, there will be substantial reductions to the percentage surcharges applied to company cars that can only be driven in zero-emission mode and also for many plug-in vehicles.