Case study: National Grid Wireless
When National Grid Wireless launched its flexible benefits scheme in December last year, it called on its in-house tax advisers for assistance.
Their advice was particularly useful when identifying which benefits were tax-exempt because the flex scheme is based on salary sacrifice arrangements. Bruce Sayers, reward and policy manager, explains that it offers all perks in this way, not just those that are tax-efficient, to ensure the scheme remains consistent.
All taxable benefits, such as private medical insurance and critical illness cover, are then reported through P11D. "We are producing slightly more in the way of P11Ds but we were producing a large number anyway because of company cars so it [isn’t] too much of a burden," explains Sayers.
Where the benefits produce tax savings, the company was keen to avoid those that it fears the government may revoke the tax advantages on such as bikes for work. Sayers adds: "We’ve tended to go for benefits where we think the tax regime will stay for some considerable time."