Year-End Tax Guide 2023/24: Tax-Efficient Staff Benefits
Optimize savings and support your team with WFH relief, electric vehicles, and trivial benefits.
Working-From-Home Allowance
Employees who are required to work from home may be able to claim tax relief of £6 a week from HMRC. Alternatively, employers can pay the allowance to employees tax-free via payroll.
This cannot be claimed if you choose to work from home – for example, if your employer operates a hybrid working policy.
Electric Vehicles
Drivers of electric vehicles and some hybrids provided by an employer pay 2% on this benefit-in-kind.
Hybrid company cars need to be registered from 6 April 2020, have CO² emissions of less than 50g/km, and travel more than 130 miles on a single electric charge to qualify for the existing 2% rate.
The application of other low benefit-in-kind rates will depend on the vehicle’s CO² emissions and the number of miles it can travel on a single charge.
Trivial Benefits
Employers can provide trivial benefits worth up to £50 per employee, as long as it’s not cash or a cash voucher, not a performance-related bonus and not included as part of a remuneration package in their contracts. No tax or Class 1A NICs will be due on such items.
Directors of close companies also qualify, although it is limited to six occasions per tax year (e.g. £300 per tax year).
Key Considerations
- Have you or your employer claimed homeworking relief in 2023/24? Bear in mind that you might no longer be eligible, even if you previously claimed this relief while Covid-19 restrictions were in place.
- Employers that provide pure electric cars in 2023/24 will save Class 1A NICs and employees may see significant income tax benefits (this may involve a salary sacrifice).
- As part of the benefit. the employer can also pay for vehicle repairs and servicing, car insurance and car tax, and may be able to claim back 50% of the VAT on any lease charges (if VAT-registered).
Year-End Tax Guide 2023/24
If you would like to access our full year-end tax guide, simply click here to view the PDF.
Alternatively, you can view an area specific mini blog from the list below:
1. Personal Allowances and Reliefs
2. ISAs
5. Property Tax
7. Business Asset Disposal Relief
10. VAT
11. Penalties
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