The UK Tax and Accounting Podcast from I Hate Numbers:

In this episode of the I Hate Numbers podcast, we explore "Inheritance Tax Exemptions and Reliefs." We'll explain the key elements that affect inheritance tax, including thresholds, gifts, and the importance of keeping records.

What is Inheritance Tax?

Inheritance tax began in 1986, replacing capital transfer tax. This tax applies to the transfer of capital value when an individual dies, certain lifetime gifts when the donor passes away within seven years, and some gifts taxed immediately. However, not everyone pays inheritance tax. Only estates exceeding the current threshold of £325,000, including any assets held in trust and gifts made within seven years of death, are liable for this tax.

Key Exemptions to ConsiderMarriage and Civil Partnerships

Married couples and registered civil partners can increase their threshold to as much as £650,000 when the second partner dies. To achieve this, the personal representatives must transfer the unused inheritance tax threshold from the first spouse or civil partner to the surviving partner. Additionally, any assets transferred between spouses or civil partners remain free from inheritance tax. However, this exemption does not apply to assets transferred to others.

Exempt Gifts

Several exemptions allow you to avoid inheritance tax on gifts. Gifts to your spouse, UK charities, national institutions, and political parties remain exempt from inheritance tax. Wedding or civil partnership gifts can also be given tax-free: £5,000 for each parent, £2,500 for grandparents or other relatives, and £1,000 for others.

An annual exemption allows you to give up to £3,000 each tax year without inheritance tax implications. Smaller gifts of up to £250 per person per year are also allowed, but cannot be combined with other exemptions. Thoughtful planning of your gifts can reduce the taxable value of your estate significantly.

Importance of Keeping Records

Accurate record-keeping of all gifts and exemptions used is crucial. Such records assist executors or personal representatives in efficiently managing estate matters and claiming all available exemptions. Clear documentation simplifies the completion of probate forms and ensures you avoid unnecessary tax payments.

Conclusion 

By understanding inheritance tax exemptions and reliefs, we make better decisions for our financial future. We encourage you to listen to the I Hate Numbers podcast for more insights on this topic and other tax matters. For more information or assistance, check out the show notes to book a call with us.

Until next week, happy planning!

We often consider inheritance tax one of life's unavoidable topics. Accordingly, we need to understand how it works and learn some basic strategies to minimise its impact. In this episode of the "I Hate Numbers" podcast, we explain what IHT is, how it applies, and share simple tips on planning effectively to avoid paying it.

What is Inheritance Tax?

Inheritance tax in the UK is a tax on the estate of someone who has passed away. It includes the property, money, and possessions left behind. When the value of the estate exceeds the "nil rate band" threshold of £325,000 per individual, we must pay IHT. However, if the estate value stays below this amount, we avoid paying inheritance tax. Any amount above £325,000 is taxed at 40%.

Key Factors to Consider

Firstly, we need to recognise that every individual has an estate. This estate may include your home, savings, shares, and personal items, all of which contribute to the total value. When someone passes away, we calculate the estate’s value, and any amount over the nil rate band will be subject to IHT. However, we can take advantage of reliefs and exemptions to reduce the tax burden.

Reduce or Avoid Inheritance Tax with Planning

To reduce or avoid inheritance tax, we must plan ahead. One effective strategy is to make lifetime gifts. When we give gifts to beneficiaries and survive for at least seven years after, we ensure these gifts are exempt from inheritance tax. Moreover, leaving everything to your spouse or civil partner also helps avoid IHT and transfers your nil rate band. Additionally, we can make use of small annual gifts, like £3,000, which remain exempt from tax.

Conclusion

When we plan effectively, we can minimise or avoid inheritance tax altogether. We encourage you to act now to make informed decisions that will benefit your loved ones. Also, listen to the "I Hate Numbers" podcast for more insights on financial planning.

Holistic tax planning is more than just a buzzword; it is a crucial strategy for anyone serious about managing their finances effectively. We believe that, to truly optimise your tax strategy, you must consider the entire tax landscape rather than focusing on isolated elements. In this week's episode of the "I Hate Numbers" podcast, we explore why taking a holistic approach to tax planning is essential and how it can benefit your overall financial health.

The Importance of a Holistic Approach

When it comes to tax planning, simply addressing one aspect of your taxes can lead to unintended consequences. For instance, when you decide to incorporate your sole trader business, you might focus solely on the benefits of paying corporation tax at a lower rate. However, if you do not consider the impact on your personal income, national insurance contributions, and potential future liabilities, you might end up with a less efficient strategy. Thus, it is evident that understanding the interplay between various taxes is critical.

Key Examples in Holistic Tax Planning

Incorporating a business is just one example where holistic tax planning comes into play. Additionally, we discuss the interaction between capital gains tax and inheritance tax. We explain how decisions about property sales and gifts can significantly affect your tax liabilities. Consequently, without a holistic view, you might make decisions that save you money now but cost you dearly later.

Seeking Professional Advice

Therefore, we emphasise the importance of seeking professional advice. Tax laws are complex and ever-changing, so having a qualified advisor who understands holistic tax planning is invaluable. They can help you navigate these complexities and ensure your tax strategy aligns with your long-term goals.

Conclusion

Overall, holistic tax planning should be a cornerstone of your financial strategy. By considering the broader tax landscape, you avoid the pitfalls of isolated decisions. We encourage you to tune in to the "I Hate Numbers" podcast for more insights on how to apply holistic tax planning in your life. Let's make sure your tax strategy is as comprehensive and effective as possible.

Imagine your income as a delicious cake. Who wouldn’t want a bigger slice, right? Maximising Your Personal Allowance is all about ensuring you keep as much of that cake as possible, even when the tax office is eyeing a big bite. Today, we’ll explain what personal allowances are and how to make sure you’re enjoying the biggest slice of your income cake.

What is Personal Allowance?

First off, Maximising Your Personal Allowance starts with understanding it. In the UK, your personal allowance is £12,570. This is the amount you can earn before you start paying income tax. Although this figure stays the same until 2028, inflation can impact its real value. So, knowing how to use this allowance effectively is essential for keeping your tax bill in check.

Applying Your Allowance to Different Income Sources

Next, when you have different sources of income, Maximising Your Personal Allowance becomes even more important. If you’re earning from both a job and self-employment, managing your allowance wisely is key. Typically, your personal allowance applies first to your employment income. As a result, any additional income might not benefit from this allowance, which could lead to a surprise tax bill. Therefore, keeping track of how your allowance is used is a smart move.

Handling Mixed Income Streams

Furthermore, if you have mixed income streams, like a regular job and a side business, Maximising Your Personal Allowance is crucial. You need to ensure that your allowance isn’t entirely consumed by your employment income alone. If not managed well, this could lead to unexpected tax costs. Thus, it’s a good idea to regularly review your tax code and manage your allowances accordingly.

Effective Strategies 

Also, to Maximising Your Personal Allowance, consider options like making pension contributions or charitable donations. These can lower your taxable income and help you get the most out of your allowance.

Conclusion

To wrap things up, managing your personal allowance effectively is key to avoiding unnecessary taxes. By understanding how it works and applying it properly, you can ensure you’re not paying more than you need to. If you need any help or have questions about managing your allowance, don’t hesitate to reach out. For more helpful tips on tax management, don’t forget to listen to the I Hate Numbers podcast!

Managing taxes is one of the many responsibilities of running a business. From personal self-assessment taxes to corporation taxes, the process can be daunting. However, by saving for taxes as you go, we can avoid the last-minute scramble and the stress of finding funds to pay our tax bill.

Why Save as You Go?

Firstly, consistent saving helps us avoid the panic of year-end tax payments. Rather than scrambling to gather large sums at the last minute, we can steadily put aside money, ensuring peace of mind. Additionally, this approach stabilises cash flow, preventing sudden, disruptive spikes in outflow.

Moreover, regularly saving for taxes means we’re always prepared. If our tax bill is lower than expected, we can use the surplus for unexpected expenses or investments. Staying compliant with tax regulations also helps us avoid penalties and interest charges.

Practical Steps to Save as You Go

To start, we need to understand our tax liability by consulting with an accountant or using a tax calculator. Then, setting up a separate savings account dedicated to taxes ensures that funds are ring-fenced and not inadvertently spent.

We recommend saving on a weekly or monthly basis, using a percentage of our income as a guideline. Revisiting our savings strategy regularly, adjusting as necessary, will help us stay on track.

Finally, maintaining accurate accounting records is crucial. Digital systems like Xero can simplify this process and provide insight into our financial health.

Conclusion

Saving for taxes as we go is a smart strategy. It reduces stress, maintains cash flow, and ensures compliance with tax laws. By thinking like an employer and acting like a boss, we can set ourselves up for long-term success. Listen to the I Hate Numbers podcast for more tips on managing your business finances effectively.

Stress and anxiety are part of the human condition. However, undue stress and anxiety are detrimental. As small business owners, we cope with numerous responsibilities. Besides delivering our products and services, we manage marketing, sales, accounting, and customer service. It's no wonder that many business owners feel stressed and anxious.

In this week's "I Hate Numbers" podcast, we discuss four strategies for coping with stress and anxiety, maintaining productivity, generating profits, and preserving well-being.

Identify Triggers

Firstly, identify what triggers your stress and anxiety. We must recognise when stress becomes excessive and causes discomfort, fatigue, or irritability. We cannot solve a problem without understanding what the root cause is.

Find Healthy Outlets

Secondly, find healthy outlets for you to relieve stress. Once you know the triggers, you need a healthy outlet. Physical activity, meditation, yoga, journaling, and spending time in nature are beneficial. Choose activities you enjoy and make time for them daily.

Find a Mentor

Thirdly, find a mentor. A mentor with business experience can offer advice, support, and empathy. They help avoid mistakes, saving time, money, and reducing stress and anxiety. Choose someone you trust and feel comfortable talking to.

Rely on Your Team

Lastly, rely on your team. Whether it is paid staff or freelancers, your team is there to help you. Delegate tasks, ask for advice, and lean on them. It makes running your business easier and helps you stay sane.

Conclusion

In conclusion, these strategies help manage stress and anxiety. Remember, you are not alone. Many small business owners face similar challenges. If stress and anxiety are excessive, seek qualified support. Join the Numbers Know How community for additional support. Listen to the "I Hate Numbers" podcast for more tips and join the Numbers Know How community. Keep stress levels at bay and stay productive.

Have you ever entered a business collaboration or bought a service only to find out it was a mistake? We've been there, and it's likely because of a lack of due diligence. This week, on the I Hate Numbers podcast, we explore why it is crucial, how to conduct it, and its benefits for your finances and well-being.

Importance of Due Diligence

In today's fast-paced world, we often make decisions based on surface-level information. Due diligence requires us to verify and validate details before proceeding. As Samuel Johnson implied, what we hope to do easily, we must first learn to do with due diligence. Therefore, before entering any business collaboration or purchasing services, we must ensure we have all the necessary information.

Key Areas 

Financial due diligence is crucial. We need to assess our partner’s financial health. Are they financially stable? Can they meet their obligations? Legally it is equally important. We need to check for any legal issues, such as lawsuits or regulatory compliance. Additionally, the cultural fit between partners is vital. Do we share similar values and objectives? Moreover, we must document everything in writing, ensuring clarity of responsibilities before parting with cash.

Putting it into practice

We should start by validating financial stability. Check financial statements, cash flow, and debts. Next, conduct legal due diligence. Research for any lawsuits or compliance issues. Also, assess the cultural fit. Understand each other's values and objectives. Finally, document everything in a written agreement to avoid misunderstandings.

Conclusion

Due diligence is about making informed decisions. It protects us from unnecessary risks and ensures successful collaborations. So, before diving into your next business venture, remember to be diligent.

Listen to the I Hate Numbers podcast for more insights and join our Numbers Know How community for resources and support in building a successful, diligent business.

When you think about kindness, do you believe it applies in business, or do you assume you need to be ruthless, wear sharp suits, and tread over anyone in your way? Or do you think otherwise? In this week's I Hate Numbers podcast, we explore the place of kindness in business and whether it truly belongs there.

The Essence of Kindness

Spoiler alert: kindness does have a place in business. But what exactly is kindness? Why is kindness not a weakness but a superpower? And how can we practice kindness in our business? Let's dive in and explore these concepts.

Defining Kindness in Business

When we think about kindness, we might envision helping people across the road, being kind to animals, and generally being nice and pleasant. While this is a reasonable definition, in business it extends beyond that. It involves treating others with respect, understanding, empathy, and care. Additionally, it means being direct and honest without being overly critical.

Kindness: A Strength, Not a Weakness

Although some might mistake kindness for weakness, it actually requires strength and courage to demonstrate it in business. Kindness is about building trust, which is the foundation of any successful business. When we are kind, we build loyalty with our team, clients, and partners, leading to long-term success.

Building Trust and Loyalty

Trust and loyalty are essential in business. They ensure that customers return, staff stay committed, and employees go the extra mile. A strong foundation of kindness fosters positive interactions with everyone involved in the business, from team members to suppliers and customers.

Constructive Feedback

Kindness in business also means having direct and honest conversations. This doesn't mean being rude or aggressive, but rather providing constructive feedback and being honest. People appreciate honesty and prefer constructive feedback, which helps them grow and improve.

Customer Relations

In customer relations, kindness plays a significant role. Customers remember how you make them feel more than the service you provide. A kind approach to customer service, managing boundaries carefully, and being straightforward with customers enhances their overall experience.

Stress Reduction

Kindness can also be a great stress reliever. The business world can be stressful, and having a positive, kind outlook can reduce stress, improving overall well-being and physical health. A welcoming environment is more conducive to productivity and satisfaction than one filled with tension.

Practicing Kindness in Business

Practicing kindness in business is fundamental and must be genuine. Small, sincere acts of kindness can make a significant difference. Active listening, showing appreciation, being empathetic, and offering help where needed are simple ways to incorporate kindness into daily business practices.

Effective Communication

Clear, open, and respectful communication is crucial. Avoid ambiguity and ensure your communication is honest and direct. This helps in building a positive working environment and fosters better relationships.

Conclusion

Kindness in business is a powerful tool that builds trust, creates a positive working environment, fosters teamwork, improves customer relations, reduces stress, and encourages personal growth. Far from being a weakness, kindness is a strength that drives success.

Call to Action

What acts of kindness will you demonstrate in your business? Check out our Numbers Know How community, where we provide resources for small businesses, artists, creatives, and coaches. Join us in creating a business community that collaborates, learns, and develops in a kind, positive environment. Until next week, stay kind.

Listen to the I Hate Numbers podcast for more insights and tips!

Introduction

Tax efficiency and tax planning are crucial for all businesses, whether private or non-profit. Additionally, one key area offering significant opportunities is benefit planning. Specifically, benefit planning allows you to remunerate your staff, including yourself as a business owner, in the most tax-efficient way.

The Importance of Benefits in KindWhy Benefits in Kind Are Useful

Firstly, benefits in kind provide a tax-efficient way to reward employees. Whether you run a private company, a charity, or a social enterprise, offering benefits can lead to tax savings.

Tax Efficiency for Employers and Employees

Consider this scenario: an employee wants to go to the gym monthly. Consequently, the employee would have to pay from their post-tax income. However, if the employer covers this cost, it can be more tax-efficient for both parties. Employers can also avoid paying extra National Insurance contributions on top of gross wages.

Examples of Tax-Free BenefitsPensions

Pension contributions made by your company are a tax-efficient way to save for the future. Moreover, these contributions are deductible against corporation tax profits, benefiting both the employee and the company.

Mobile Phones and Technology

Employers can provide mobile phones, laptops, and smartphones. These items, provided through company contracts, are tax-free benefits and valuable tools for employees.

Workplace Parking and Health Benefits

Offering free parking is another tax-efficient benefit. Additionally, employers can provide health screening and medical checkups, promoting employee well-being.

Trivial Benefits

Trivial benefits, costing £50 or less, can be provided tax-free under certain conditions. They must not be cash or cash vouchers and should not be performance rewards. For company directors, there's a £300 limit per tax year.

The Advantages of Offering BenefitsBusiness Expenses Deduction

Employers can deduct the cost of these benefits as business expenses, reducing overall tax liability. Furthermore, providing these benefits boosts employee satisfaction and retention.

Tax-Efficient Remuneration Strategy

Employers can remunerate staff without the additional burden of National Insurance and tax. Consequently, this approach is beneficial for both the employer and the employee.

Conclusion

In conclusion, tax-efficient benefit planning is a strategic way to reward employees. Whether you run a private company, charity, or social enterprise, consider incorporating benefits in kind into your remuneration strategy.

Call to Action

Listen to the I Hate Numbers podcast for more insights and tips on maximizing your business's tax efficiency. Join our Numbers Know How community and take advantage of our resources to help your business thrive.

Explore our FREE Online Business Calculators

Benefits in kind tax planning can give business owners and employers another way to think about how money and value move from the organisation to the people working in it.

Salary and dividends often get most of the attention, particularly in private companies.

However, they are not the only options available.

Benefits in kind can form part of a wider remuneration strategy for owner-directors and employees, helping us think about tax efficiency, cost efficiency and the overall value of the employment package.

In this episode, we explain what benefits in kind are, why they can be useful, how they compare with salary and dividends, and some of the advantages for both employers and employees.

About this episode

Managing tax efficiently and legally is part of running a business properly.

That applies whether you are an owner-director looking at how to take value from your company or an employer thinking about how to reward and retain your team.

Benefits in kind are sometimes overlooked because the default conversation tends to revolve around cash pay.

For private company owners, that often means salary and dividends.

For other employers, the focus may simply be on wages.

However, a well-structured benefits package can add another dimension to that conversation.

What are benefits in kind?

Benefits in kind are benefits or perks provided to employees or directors outside their normal cash salary.

They still have a financial value.

Examples discussed in the episode include:

• company cars
• private medical insurance
• living accommodation
• low-interest or interest-free loans
• gym or club memberships
• mobile phones
• workplace parking

The important point is that the employer provides something of value rather than simply giving the employee additional cash.

Some benefits are taxable.

Others can qualify for specific exemptions when the conditions are met.

So "benefit in kind" does not automatically mean "tax free".

“When you structure it correctly, do things correctly in the beginning, benefits in kind are a powerful tool both for yourself and your employees.”Why benefits in kind can be tax efficient

One of the main arguments in the episode is tax efficiency.

Imagine you want to pay for something personally, perhaps a gym membership.

If you fund it from your own pocket, you first need to earn enough money after Income Tax and National Insurance to cover the cost.

If the company provides the benefit instead, the tax treatment can be different.

Many taxable benefits do not attract employee Class 1 National Insurance in the same way that extra salary does.

Instead, the employer may have a Class 1A National Insurance liability.

For 2026/27, the Class 1A rate on expenses and benefits is 15%.

The employee may still pay Income Tax on the taxable value, so this is not about making taxable benefits magically tax free.

The point is that the overall tax and National Insurance result can be different from simply paying enough extra salary for somebody to buy the same item personally.

Think about the gross salary needed to buy something personally

This is one of the most useful ways to look at the strategy.

Do not simply compare a £100 benefit with £100 of salary.

Ask how much gross salary the employee would need before tax and National Insurance to end up with enough money in their pocket to buy that £100 item.

That gives us a more realistic comparison.

Depending on the benefit and the employee's tax position, the employer providing the benefit can produce a different result from paying the equivalent amount as additional salary.

That is where the planning opportunity begins.

Cost efficiency matters too

Tax is only one part of the picture.

The episode also highlights the commercial buying power of an employer.

A company providing benefits to several employees may be able to negotiate a better rate than each individual could obtain separately.

For example, an employer may be able to negotiate corporate pricing for:

• private medical insurance
• gym or fitness memberships
• other employee benefit packages

That can create a genuine commercial saving before we even look at the tax position.

So the question is not only, "Can this save tax?"

It is also, "Can the company buy this more efficiently than the employee can?"

Benefits can improve the overall employment package

Money matters to employees, but the wider employment package matters too.

Benefits can provide value beyond the amount that appears in somebody's bank account each month.

Health cover, parking, phones, professional development and other non-cash benefits can all influence how people feel about their job.

That means benefits can also play a role in attracting and retaining good people.

For employers, the aim is to create a package that employees genuinely value rather than simply adding perks for the sake of it.

Owner-directors can use the same thinking

The strategy is also relevant to small private companies where the owner is a director and employee.

If that describes you, it is easy to focus entirely on how much salary to take and how much to draw as dividends.

Those are important decisions, but they do not have to be the end of the conversation.

Ask what costs you currently pay personally that the company could legitimately provide as part of your remuneration package.

Then look at the tax treatment of each item properly before making a decision.

That is a more rounded approach than assuming every pound must leave the company as either salary or dividend.

Salary and dividends are still important

The episode does not suggest that salary and dividends are wrong.

They remain common ways for private company owners to take money from their businesses.

Salary is normally a deductible employment cost for the company, subject to the relevant Corporation Tax rules, but it can also create Income Tax and National Insurance costs.

Dividends work differently.

They come from profits available for distribution and do not reduce the company's taxable profit in the way salary normally does.

For 2026/27, the dividend allowance is £500.

Dividend income above the available allowance is taxed at 10.75%, 35.75% or 39.35%, depending on the individual's tax band.

For a broader explanation of how dividends work, see our guide to dividends for company directors.

Benefits give us a third option to consider

This is really the central planning message.

Instead of asking only:

• How much salary should I take?
• How much dividend should I take?

we can also ask:

• Are there useful benefits the company could provide?
• Would those benefits replace costs I currently pay personally?
• What tax and National Insurance treatment applies?
• Could the company buy them more cheaply?
• Would employees actually value them?

“The traditional route salary and dividends, nothing wrong with that as a default approach, but for me, it's quite limiting.”

This does not mean benefits always beat salary or dividends.

It means we should compare the options rather than defaulting to one approach without thinking.

Not every benefit gets the same tax treatment

Benefits in kind need to be looked at individually.

Private medical insurance, company cars, accommodation, loans and club memberships can all have different valuation, reporting and tax rules.

Some taxable benefits can create an Income Tax charge for the employee and Class 1A National Insurance for the employer.

Others can qualify for specific exemptions.

That is why we should not simply label something "a company benefit" and assume it will automatically save tax.

If you want the broader catalogue of taxable and tax-free options, see Saving Tax with Company Benefits.

Examples of benefits that can be tax free

The episode gives a few examples as a taster.

One is a mobile phone.

Where the employer provides one mobile phone or SIM to an employee and the contract is between the employer and the supplier, the benefit can be exempt from tax and National Insurance.

Workplace parking can also be exempt where the employer provides parking at or near the employee's workplace.

Workplace nursery provision can qualify for an exemption when the relevant conditions are satisfied.

Older employer-supported childcare voucher schemes can also retain favourable treatment in some cases, but the exemption is generally restricted to employees who joined the qualifying scheme and had their pay adjusted on or before 4 October 2018.

So childcare vouchers should not be treated as a generally available new tax-free benefit.

Company cars need their own calculation

Company cars are another classic benefit in kind.

However, the tax treatment depends on the vehicle and its benefit value.

Factors such as the car's list price, emissions and power type can affect the taxable benefit.

That makes company cars a separate planning decision rather than something we can deal with using a simple general rule.

For a deeper look at that area, see Buying Your Car Through Your Business.

Remember the reporting side

If a benefit is taxable, there may also be reporting and payroll obligations.

Employers can report taxable benefits through payroll where the relevant arrangements are in place, while other benefits may still need year-end reporting.

Class 1A National Insurance also needs to be dealt with where it applies.

So good benefits planning has two parts:

• choosing benefits that make commercial and tax sense
• making sure the tax and reporting treatment is handled correctly

A practical way to review your benefits strategy

Start with the real-world cost rather than the tax rule.

1. List what people already pay for personally. Look for costs that employees or owner-directors genuinely value.
2. Check whether the company could provide them. Consider commercial pricing and employer buying power.
3. Check the tax treatment. Work out whether the benefit is taxable, exempt or subject to special rules.
4. Compare it with salary. Ask how much gross salary would be needed to fund the same personal cost.
5. Compare it with dividends where relevant. For owner-directors, look at the whole extraction picture rather than one route in isolation.
6. Deal with the paperwork. Make sure payroll, reporting and company records support the arrangement.

That gives us a much stronger basis for deciding whether the benefit is genuinely worthwhile.

FAQsWhat is a benefit in kind?

A benefit in kind is a non-cash benefit or perk provided by an employer to an employee or director. Examples include company cars, medical insurance, accommodation and certain loans.

Are benefits in kind tax free?

Not automatically. Some benefits are taxable, while others qualify for specific exemptions when the conditions are met.

Do employees pay National Insurance on benefits in kind?

Many taxable benefits do not attract employee Class 1 National Insurance in the same way that salary does. Instead, the employer may pay Class 1A National Insurance. The exact treatment depends on the benefit.

What is the Class 1A National Insurance rate for 2026/27?

The Class 1A National Insurance rate on expenses and benefits for 2026/27 is 15%.

Can a company pay for my gym membership?

It can, but ordinary gym membership is normally a taxable benefit rather than automatically tax free. You should compare the overall cost and tax position with paying for it personally.

Can a company provide a mobile phone tax free?

One employer-provided mobile phone or SIM can be exempt where the employer contracts directly with the supplier and the relevant conditions are met.

Is workplace parking a taxable benefit?

Parking provided at or near the employee's workplace can qualify for an exemption.

Are childcare vouchers still tax free?

The old employer-supported childcare voucher exemption is generally limited to qualifying legacy schemes. Workplace nursery provision can still qualify for separate favourable treatment when the conditions are met.

Should I take benefits instead of salary or dividends?

Not automatically. Benefits should be considered alongside salary, dividends and the wider remuneration package. The right mix depends on the company, the individual and the specific benefit.

Episode Timecodes

• 00:00 - Why benefits in kind belong in tax planning
• 00:43 - Setting the benefits-in-kind framework
• 01:06 - Owner-directors, employers and employee rewards
• 01:56 - What benefits in kind are
• 03:05 - Tax efficiency and paying personal costs
• 04:16 - Cost efficiency and corporate buying power
• 05:15 - Employee satisfaction and retention
• 06:38 - Salary and dividends as the usual approach
• 07:22 - Dividend limits and company profits
• 08:41 - Salary, tax and Corporation Tax
• 08:59 - Benefits as a third remuneration option
• 09:45 - Tax-free benefit examples
• 10:20 - Reviewing benefits in your own business

Related episodes and guides

• Saving Tax with Company Benefits
• Dividends Explained for Company Directors
• Buying Your Car Through Your Business

Key takeaway

Benefits in kind tax planning is not about finding a magic tax-free way to pay for everything.

It is about widening the conversation.

Salary has one tax treatment.

Dividends have another.

Benefits can create a third option, with their own tax, National Insurance and commercial consequences.

When the company can provide something an employee already values, buy it efficiently and structure it correctly, benefits can become a useful part of the wider remuneration package.

Compare the options rather than defaulting automatically to cash.

Plan it. Do it. Profit.

Further Support

If you want to review the way you take money from your company or the benefits you provide to employees, you can contact us for an initial chat.

We can help you compare salary, dividends and company benefits, understand the tax treatment and put the right payroll and reporting processes in place.

You can also use our free online business calculators to support your wider financial planning.

For more practical finance and tax guidance, visit the I Hate Numbers YouTube channel, or listen and follow on Apple Podcasts.

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