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Blue light Card - how to reimburse employees £5?

How can I reimburse our employees the £4.99 subscription to the Blue light discount card

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We would like to give our employees £4.99 so they can sign up for the Blue Light discount card which gives them discounts across various stores/ venues etc.

The employee has to sign up themselves, we cannot as a company sign them up and so we will need to reimburse them the £4.99 subscription fee, how can I do this without incurring tax and NI on the reimbursement or triggering a taxable benefit?

It will be offered to all employees.

Any guidance would be greatly appreciated.

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Caroline
By accountantccole
27th May 2020 13:00

Have a look at the trivial benefit rules - see if you can fit your scheme to that. Cash to employees will always be subject to PAYE/NI.

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By ACLARKIN
27th May 2020 14:09

Thank you so much for your reply.
That is what I thought re cash and as the employee has to register we will have to reimburse them in cash which then means it falls outside the trivial benefits rules.

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By Tax Dragon
27th May 2020 15:30

It'd be outside the trivial benefit rules anyway, given any decent reading of the legislation. (No offense to the previous respondent.)

How much are you willing to pay to save tax and NIC on £4.99?

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By ACLARKIN
27th May 2020 16:07

Was hoping there would be a way to reimburse the employees without incurring tax and NI? But looking unlikely !

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By Tax Dragon
27th May 2020 20:34

PSA would probably be the normal way to sort it.

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By ACLARKIN
28th May 2020 16:57

That is a great idea - thank you

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