In-Accountancy

News and Views

Benefits in kind

Benefits in kind which are exempt from tax and national insurance can be a more tax efficient way of taking remuneration from your company than dividends.

Stockport accountants, IN Accountancy, state that  ‘Benefits in kind’ are an alternative to cash so they should really replace a cost that you would incur personally out of your taxed income but which the company could pay for. The main ones that are exempt from income tax and NI are:

  • Contributions to a registered pension scheme
  • Zero emission cars or vans
  • Training paid for by your company
  • Childcare facilities
  • Childcare vouchers (limited exemption)
  • Free/subsidised meals in the workplace.
whiteboard with numbers on it
Training paid for by your company is a benefit in kind

The financial advantage of claiming ‘benefits in kind’ might not be that great but can be worthwhile.

A further advantage is that they can be provided by your company even when it has no profits.

 

This can make tax and NI-free ‘benefits in kind’ a good option for a young business as it’s often several years before a business starts to make  money.

For expert help with working out the best option between claiming dividends and ‘benefits in kind’ for your particular business situation, please contact sarah@in-accountancy.co.uk or ring 0161 456 9666.

 

Related articles

Accountants for Amazon Sellers
Limited Companies

Amazon Sellers – top tips to ensure your long term success

Have you ever considered selling on Amazon or eBay, setting up an eCommerce business, or a little side hustle?

If this sounds like you, it seems you are not alone.

More and more people these days are selling online to boost their income, sometimes just for a bit of fun and with no higher plans, and other times in the hopes of turning this so called side hustle into their dream job and their very first foray into entrepreneurship…

We have been receiving lots of enquiries recently about accounts and tax for Amazon sellers, so I’ve recorded a little video outlining our top tips if you are thinking about giving it a go yourself…

Read More »

Find out how we can help?

Lectus scelerisque a donec tincidunt litora per eleifend eget ut sagittis conubia pharetra scelerisque dui ultricies duis parturient auctor adipiscing.

 

Let’s start a conversation 

    Subscribe me for updates and news from In Accountancy

    IN-ACCOUNTANCY

    Search