Guide: Taxing Benefits in the UK
So, what are normally considered employee benefits?
Employment benefits are perks or advantages that an employee receives from their employer in addition to their salary or wages. These benefits can include things like private health insurance, gym memberships, allowances and bonuses.
How are they taxed?
Employment benefits are subject to tax and National Insurance contributions (NICs) in the UK. However, not all benefits are taxed in the same way. Some benefits are tax-free, while others are taxed differently depending on the benefit.
What's tax-free?
Some employment benefits are tax-free in the UK. These include things like workplace pensions, snacks and onsite meals, some mental health benefits like therapy, and courses relating to an employee's job.
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