Making the most of fringe benefits

More than just a salary

Based on HM Revenue & Customs (HMRC) statistics, private medical and dental cover is by far and away the most popular taxable benefit provided to employees and directors. Perhaps no surprise given how easy this benefit is for employers to arrange, but there is a whole range of wellbeing benefits that employers can also provide with minimum extra effort.

The second most popular taxable benefit is the company car, even though these can easily be very tax inefficient. This is borne out by HMRC figures which show that most company cars are diesels, and that cars with low emission rates are nowhere near as prevalent as would be expected given the tax savings they offer over higher emission vehicles. The percentages used in calculating company car benefits have been announced for 2022/23, 2023/24 and 2024/25, and throughout this period there will be a maximum 2% benefit-inkind charge for electric-only powered cars and hybrids with CO2 emissions between 1 and 50 grams per kilometre and an electric range of 130 miles or more.