Have you heard of benefits in kind? If you haven’t, then read on to find out how this particular strategy can increase your tax savings as a business owner.
What are benefits in kind?
Well, they are perks or advantages provided to employees (directors as well) in addition to their salary and dividends. These include company cars, different kinds of insurance, gym memberships, private phones, and more.
Tax savings and cost efficiency
I’m sure this is what interests you quite a lot. And it’s one of the advantages of benefits in kind – which is the potential for significant tax savings.
Another important argument for using benefits in kind is cost efficiency. It’s a cost-effective way for a company to reward employees, as the cost of providing these benefits is often cheaper than if employees were to fund them out of their own pocket.
More on benefits in kind
Watch the video below to find out more about them. I also compare them to salaries and dividends, I offer financial planning considerations and I provide many practical examples. All of this, so that you can fully understand the power of benefits in kind.
Conclusion
Overall, I urge you to consider using benefits in kind as a tax-efficient strategy for managing finances and rewarding employees. By exploring the potential benefits of benefits in kind, you can maximise your tax efficiency, reduce costs, and improve employee satisfaction and retention.
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