What can this mean for me?
So we’re still with our 52 top tips, and we’re onto the topic of reward. Today is all about the nine of spades, which is flexible benefits.
This is a way of offering each employee benefits which better meet their needs and circumstances. Young singles may prefer more cash, parents may prefer more holiday, and older employees may prefer more pension benefits, pension payments. Flexible benefits need to be carefully planned, so as not to discriminate against anyone, and can be arranged to be taxed efficient. By offering flexible benefits, employers may attract and retain better quality staff.
Now flexible benefits can include lots of different things. They can be, to do with computers or bicycles. They can be shopping vouchers. They can be medical insurance, dental insurance, pension contributions, extra holiday. But getting that scheme right is really important. And also getting HMRC approval for the scheme is really important. It can’t be seen to be a tax loop. It has to be an approved scheme. So it’s worth really thinking about what would benefit your employees. What’s the most tax efficient way to provide those benefits to your employees? And holiday tends to be one of the most popular ones, at the moment, but it does go in cycles.
So keep communicating with your staff, look at your demographics, and decide what you need to do, to attract and retain the best quality staff for your business.