In this video we take a look at some real-life examples of how our contractor clients can get more tax efficient by getting their company to pay for a selection of benefits directly from their business bank account.

Our blog post covers this is detail. See https://www.no-worries.co.uk/blog/tax...

Here we discuss the pros and cons of taxable benefits versus dividends for contractors. It explains that while you can extract funds from your limited company through a salary, dividends, a loan, or reimbursement for business expenses, you can also have your company pay for certain expenses that you might not typically consider business-related. However, this can have different tax implications.

The blog referred to in the video provides examples of taxable and non-taxable benefits. For instance, a company paying for a gym membership (a taxable benefit) ends up being less tax-efficient than paying for it personally. On the other hand, the company paying for eye tests and glasses (a non-taxable benefit) proves more tax-efficient.

We conclude by advising contractors to carefully consider the tax implications of both taxable and non-taxable benefits. For taxable benefits, it might be better to take a dividend and cover the cost personally. Some non-taxable benefits available to limited company contractors include trivial benefits, employer pension contributions, health checks, company parties, mobile phones, bicycles and safety equipment, and a home working allowance.