Providing benefits to employees

[d000hg]

Many big companies provide benefits to employees. A previous employer of mine paid for eye tests and would give you £X towards new glasses, and also had discounted rates on gyms etc. Or some companies actually have their own facilities like gyms and provide food for employees.

Is there any reason I can't do this in my company? And is there any benefit to doing it, regarding income tax/VAT? The obvious potential disadvantage would be if I ever hired employees but let's leave that out of the equation.

[NotAllThere]

When a bigco pays for employee benefits, some of those will count as BIK. So tax and NI will be due. This is fine for employees, as they're only paying the tax on it. Totally pointless for company owners, as all you'll be doing is paying more tax than you need - employers NI. Better declare a dividend and pay your gym membership from that.

[Hex]

Many big companies provide benefits to employees. A previous employer of mine paid for eye tests and would give you £X towards new glasses, and also had discounted rates on gyms etc. Or some companies actually have their own facilities like gyms and provide food for employees.

Is there any reason I can't do this in my company? And is there any benefit to doing it, regarding income tax/VAT? The obvious potential disadvantage would be if I ever hired employees but let's leave that out of the equation.

You can have the eye test tax free. Your company can pay. The other items would incur a BIK.

[d000hg]

BIK? I didn't come across that before.

[NickNick]

BIK? I didn't come across that before.

Benefit in Kind.

[Crossroads]

BIK? I didn't come across that before.

You mean you didn't declare it as a benefit you received...

[NotAllThere]

BIK - treated as though you'd received it as salary and paid for the service yourself.

So, gym membership costs £1000 a year. Your company pays that. The company then must deduct the eenic and tax from that £1000 from your salary, and pay the ernic.

[SueEllen]

You can have the eye test tax free. Your company can pay. The other items would incur a BIK.

I think you can have some money towards your your optical device needed to comply with Healthy and Safety Regulations.

Ask your accountant.

[Hex]

I think you can have some money towards your your optical device needed to comply with Healthy and Safety Regulations.

Ask your accountant.

I believe you can claim for glasses if the optician will confirm that they are required solely for VDU use.

[NotAllThere]

Does that cover LCD VDUs?