Hi

As Briton’s return to work after what was, for many, a long Christmas break, I wish you a very warm welcome to 2025.

Just before Christmas I was reminded by my clients Dan and Jess of a tax-free perk which is available to those of us who run our businesses as a limited company. So here, after a bit of research, are a few tax-free benefits you can enjoy as an employee of your own limited company.  

Mobile phones: A tax exemption enables an employer to provide an employee with a mobile phone which can be used privately without a tax charge arising. The exemption only applies where a mobile phone is made available for the employee's use without ownership being transferred to the employee and is limited to one mobile phone per employee.

The trivial benefits exemption: The trivial benefits exemption which is the one Dan and Jess reminded me about is a very useful exemption with potentially wide application as it enables an employer to provide low value benefits to employees without triggering a tax charge. There is no limit to the number of trivial benefits that an employee can enjoy each tax year, although for close company directors and members of their family a cap of £300 per year applies.  The exemption is contingent on certain conditions being met as follows: 

• The benefit is not cash or a cash voucher 
• The cost of each benefit does not exceed £50. 
• The benefit is not provided under a salary sacrifice arrangement and is not provided in recognition of services performed by the employee. 

Medical check-ups and health screening: The tax legislation contains valuable exemptions for health screening and medical checkups and is limited to one health screening assessment and one medical checkup each year. A health screening assessment is one designed to identify employees who may be at particular risk of ill health, and a medical checkup is a physical examination.

Parking can be expensive and meeting the cost of employees parking can be a valuable benefit. A tax exemption allows an employer to provide employees with workplace parking at or near the employee's workplace tax free. The exemption extends to the reimbursement of an employee's parking costs, meaning that an employee can claim back the cost of parking in a commercial car park. The employer does not have to provide on side parking for the exemption to apply, the parking can be in a nearby car park.

Noel Guilford