While company cars often come with tax implications, there are specific situations where the associated benefits may be exempt. There are circumstances where it can be possible to offer employees car
Category: Employee Benefits
Employee benefits are any forms of perks or compensation that are provided to employees in addition to their base salaries and wages.
The scope of the trivial benefits legislation
The trivial benefits legislation provides a simple and practical tax exemption that allows employers to give small non-cash benefits to employees without triggering tax or National Insurance
Avoiding the car fuel benefit charge
Employees with company cars may be paying unnecessary tax on private fuel, when reimbursing the cost of private fuel in full can often remove the car fuel benefit charge altogether. Where an employee
Taxable company benefits
As an employee, you pay tax on certain company benefits, such as cars, accommodation, and loans. Your employer calculates the tax you owe and deducts it through Pay As You Earn (PAYE). The amount of
Tax and trivial benefits
There is a trivial benefit-in-kind (BiK) exemption that applies to small, non-cash gifts (such as a bottle of wine or a bouquet of flowers) that are occasionally given to employees. This exemption
Taxable benefits for use of company car
The tax you pay on the use of a company car depends largely on its CO2 emissions, so choosing a lower emission or electric vehicle can make a significant difference to your overall tax cost. The
Using your own car for work purposes
Using your own car or bike for work travel? You may be able to claim tax relief for business mileage. If you are employed and spend your own money on items needed for your job, you may be eligible to
Claim for a business journey in a private vehicle
Use your own vehicle for work? You could be entitled to a tax-free mileage allowance. Make sure you are not missing out on HMRC-approved rates. If you use your own car, van, motorcycle, or bicycle
Repay private fuel provided for company cars
Employees using company fuel for private journeys can sidestep a hefty benefit charge by repaying the full private fuel cost to their employer by 6 July 2025. Miss the deadline, and tax becomes
Still time to repay private fuel costs and avoid tax charge
Use a company car for personal trips? Avoid a hefty tax charge by reimbursing your employer for private fuel by 6 July 2025. It-s called “making good” - and it could save you a chunk in
Tax and employee suggestion schemes
Have you set up a suggestion scheme for ideas that could save or earn you money? Employee suggestion schemes can offer up to -5,000 tax-free for valuable input — and even -25 for smaller
Make the most of trivial benefit payments 2025-26
Small gifts can mean big tax savings! Use the trivial benefits exemption in 2025-26 to reward employees with non-cash perks under -50 - no PAYE, no P11D, and no NIC. A smart, simple way to say
What is a salary sacrifice?
A salary sacrifice scheme lets employees swap cash salary for non-cash benefits, saving tax and National Insurance. But earnings must not fall below the National Minimum Wage, and life events may
Check or update company car tax details
If you use a company car for private travel, it's taxed as a Benefit in Kind (BIK). The tax rate depends on the car-s list price and CO2 emissions—low-emission vehicles get tax breaks. Use
Tax-exempt employee loans
Beneficial loans, where employees benefit from cheap or interest-free loans from their employer, can trigger tax implications. However, certain exemptions, like loans under -10,000 or qualifying
Payrolling employee benefits
Employers can voluntarily register to report and account for tax on certain benefits and expenses via the RTI system before the start of the tax year. This process, known as payrolling, eliminates the
Employee Retention Strategies for Hospitality Businesses: Enhancing Workforce Loyalty and Satisfaction
Employee Retention Strategies for Hospitality Businesses: Enhancing Workforce Loyalty and Satisfaction Employee turnover in the hospitality industry can be a significant challenge. Finding and training new staff can drain resources and disrupt service. To combat this, it is essential for you to focus on employee retention strategies that create a supportive environment where staff want … Continue reading Employee Retention Strategies for Hospitality Businesses: Enhancing Workforce Loyalty and Satisfaction
Advising HMRC of employees- company car details
Ensure compliance with HMRC rules when providing company cars. From P46(Car) submissions to benefit reporting, learn what steps to take for private use and specific exemptions.
Here are the steps you
Using the car fuel rates
Advisory fuel rates for company cars help employers and employees manage fuel costs without triggering tax liabilities. Learn how to use these rates to avoid tax, especially car fuel benefit
Not so Trivial Tax Benefits
There is a trivial benefit-in-kind (BiK) exemption for small, non-cash employee benefits. This exemption applies to BiKs classified as ‘trivial,’ helping employers simplify the handling of these
RSUs and Vesting Schedules: Essential Insights for Employees
RSUs and Vesting Schedules: Essential Insights for Employees Restricted Stock Units (RSUs) are a significant part of equity compensation, offering valuable benefits to you as an employee. Understanding how these units work, particularly the vesting schedules, is essential for making informed decisions about your financial future. Vesting schedules determine when you gain full ownership of … Continue reading RSUs and Vesting Schedules: Essential Insights for Employees
Medical and dental care for employees
There is no requirement for employers to pay tax and National Insurance on certain health benefits covered by tax concessions or exemptions. For example, there is no requirement to report employees-
Tips at work
Tips received at work do not count towards your earning for the purposes of the National Minimum Wage. However, you are still required to pay Income Tax on these tips and may also need to pay National
Late night taxi for an employee
There is no specific requirement for employers to provide employees with transport home. Nevertheless, an employer has a duty of care to their employees, which means that they should take all steps
Tax and employee share schemes
There are a number of government approved share schemes which offer various incentives to employees. The rules of the schemes vary but they are all designed to help incentivise employees by giving
Employee suggestion schemes
There are many advantages to creating an employee suggestion scheme where employees are rewarded for making suggestions that benefit your business. Apart from the value that these suggestions can have
Beneficial tax-exempt loans
An employee can obtain a benefit when provided with an employment-related cheap or interest-free loan. The benefit is the difference between the interest the employee pays, if any, and the commercial
New tips guidance published
New rules that stop employers from withholding tips from people working in the hospitality, leisure and services sectors are a step closer following the publication of a new Code of Practice on
Bikes for employees
The Cycle to Work scheme allows employers to provide bicycles and cyclists- safety equipment to employees as a tax-free benefit. The scheme must be offered to all employees and the bike must be used
Payrolling employee expenses and benefits
Employers can register on a voluntary basis (before the start of the tax year) to report and account for tax on certain benefits and expenses via the RTI system. This is known as payrolling and
