Perks (tax treatment)

• Eating in a subsidised canteen at your place of employment, which is available to all employees generally on the same terms, is not a taxable benefit. If your firm is less generous, you could still receive luncheon vouchers with a value of up to 15p per day tax free. Parties provided by your employer up to a cost of £75 per head per year.
• Any car or motorcycle parking provided free of charge at the workplace is not taxable.
• If your employer provides a pension scheme to which the employer makes contributions, these contributions are not taxable on you.
• Interest-free loans, provided the loan is less than £5,000, will be tax free.
• Professional subscriptions paid by your employer would generally not be taxable.
• Long service awards subject to certain conditions can be made tax free.
• Share Incentive Plans (SIPs) allow companies to give up to £3,000 worth of "free shares" each year to employees. In order to qualify for these free shares, employees can buy up to £1,500 of partnership shares out of their gross salary. For each partnership share, the employer can give up to two matching shares.

How much tax do you pay?.....What percentage of your income is it?.....What affect does your company car have on your earnings?.....See also: Our tax tables and our guide to saving personal tax .

Last Updated: April 2008 © Moneyextra.com

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