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Tax efficient ways to get your staff fitter and healthier

Tax efficient ways to get your staff fitter and healthier

It makes sense that a healthy workforce is a productive workforce. As well as being more motivated during the day and getting more done, they’re also less likely to take sick days. The government has recognised these benefits and has introduced tax breaks to employers who promote good health so encouraging your staff to be fitter and healthier is now also more tax efficient.

Provide basic health care

Subject to certain qualifying conditions, employers can provide free medical check-ups and eye tests. As from the 1st January 2015, they can also contribute up to £500 a year for rehabilitation treatment to help an employee return to work after an injury or illness.

Cycle-to-work scheme

A great way to encourage employees to get active is to introduce the cycle-to-work scheme. When introduced properly, this can not only save your staff up to 42% of the cost of a bicycle, it can also provide companies with a big tax break. Additionally to this, you can also benefit in cash terms through a saving in National Insurance costs as well as promote that your business encourages more environmentally friendly ways of commuting to work.

Gym membership

Providing free gym membership to your staff is an excellent way of encouraging them to get active and it also creates a taxable benefit in kind. If your company can’t afford to pay for everyone’s membership you can still help your employees by securing a corporate discount. Gyms frequently give discounts to local companies and whereas an individual might have to pay £40, through the company group rate they may be able to get it for £30. Although there are no tax advantages of this, it’s a great benefit for those who are looking to get fit.

Provide healthy lunches

A qualifying workplace canteen can provide free or subsidised meals tax-free. Here you can offer healthier food alternatives and encourage people to eat fresher and more wholesome lunches.

Participate in an event for charity

Physical challenges have become a very popular way of raising money for charity. From Tough Mudder and half marathons to midnight walks and Race for Life – there are plenty of different options for all fitness abilities. Getting a group from the office together to participate in one of these events is a great way of encouraging team work, bringing people closer together, getting people active and to show that your company does their bit for charity.

If an employer wants to provide ad-hoc benefits to their staff such as massage therapy, mindfulness courses or fitness classes, providing they are free to the employee, this could be covered by a PAYE settlement agreement. As well as promoting better health amongst your team, this also avoids the need for the extra administration of submitting P11Ds.

If you would more information about tax efficient ways of getting your staff fitter and healthier, please feel free to contact Windsor Accountancy and a member of our team will be more than happy to help.