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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.12 Ensuring engagement packages are effective and compliant for tax and NIC purposes /Tax and NIC-effective engagement packages—understanding objectives / E4.1203C Non-monetary aspects of the engagement package
Commentary

E4.1203C Non-monetary aspects of the engagement package

Personal and employment tax

This article summarises some contractual components which, although not providing cash to the employee, may have a direct or indirect impact on the way by which the contract is performed.

Non-cash employment rewards—overview

Non-cash elements of a remuneration package can take many forms, with many employment contracts incorporating a number of such benefits. The non-cash components of a remuneration package tend to fall into the following general categories:

  1. Ìý

    •ÌýÌýÌýÌý benefits which are required for, or help toward, the effective performance of the job, such as 'live in' accommodation or a company car, see E4.1209

  2. Ìý

    •ÌýÌýÌýÌý items which can be loosely described as of a welfare nature, since they ensure the employee's basic well-being and protect the financial security of the employee and their family. Examples include paid annual and sick leave, accidental injury and death benefits, and company pension schemes, see E4.1211

  3. Ìý

    •ÌýÌýÌýÌý benefits used to motivate the employee. These may be provided on a formal, structured basis such as non-cash incentive awards, or an a more ad hoc basis

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Web page updated on 17 Mar 2025 17:11