Miscellaneous benefits in kind

The list of miscellaneous company benefits that can be provided tax-free to employees is quite short. However, some of the benefits that can be provided include the following:

  • Medical insurance or medical treatment for employees working abroad.
  • One annual medical health check and / or health-screening assessment.
  • Exempt loans to employees. There are a number of scenarios where beneficial loans are exempt and employers might not have to report anything to HMRC or pay tax and National Insurance. The most common exemption relates to small loans with a combined outstanding value to an employee of less than £10,000 throughout the whole tax year.
  • Living accommodation. There are special rules for the provision of living accommodation to employees under certain circumstances. In most cases, employees will pay tax on any living accommodation provided by an employer unless they qualify for an exception.

An exception for living accommodation will usually apply in cases where:

  • the accommodation is necessary for an employee to do their job properly; 
  • it’s customary to have living accommodation with the job and it means the employee can perform their job better; and
  • the employee faces a special threat to their security because of their job, and the living accommodation is in place to help protect them.

There is no requirement to pay tax on benefits and expenses covered by concessions or exemptions and they do not need to be included on a tax return.

Source:HM Revenue & Customs| 20-02-2023