In addition to salary, many businesses provide a range of employee benefits to attract and retain high quality staff. Typical employee benefits may include:
These are just a few examples of what may be offered. Anything that’s provided to your employees in recognition of their contribution to your business can be called a benefit. Larger companies may offer flexible benefits, where employees can choose from a list, within specified limits.
The advantage of offering employee benefits (rather than just increasing salary) is that this can be both a cheaper and a more tax-efficient way to reward your staff, and so may represent much better value for money. That said, many benefits are themselves taxable, so discuss them with your accountant. Your accountant can also set up the employee benefits for you.
One benefit that is compulsory is a workplace pension - as an employer you are obliged to offer this to every employee. However, if you don't have your own workplace pension scheme you can use the government's own scheme, NEST.
You will also need to inform HMRC about any agreements you make over use of a company car: whether fuel is to be paid for exclusively by the employee or business mileage is to be claimed on a pence-per-mile basis.