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 ย โBenefits in kindโ 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.

The financial advantage of claiming ‘benefits in kind’ mightย 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 โbenefits in kindโ a good option for a young business as itโs often several years before a business starts to make ย money.
For expert help with working out the best option between claiming dividends and โbenefits in kindโ for your particular business situation, please contact sarah@in-accountancy.co.uk or ring 0161 456 9666.