The HR Forum

Employee Reward - Fun Fund

My company are looking to trial a 'Fun Fund' which would allow senior managers to spend £10 per head each month on a social activity with their team. The idea behind this is that it would help bring teams closer together and improve morale in our offices. One issue we have encountered is the tax implications associated with doing this as managers cannot expense activities that they do with their teams without the business coming under scrutiny from HMRC. We could potentially add this to P11d's as a benefit in kind but then it dilutes the positive message we are trying to deliver if managers are then going to pay tax on this amount. 

Does anyone else operate something similar or could you suggest ways we can provide this benefit to our employees? Any suggestions would be much appreciated.

Thanks in advance.

Ben Emmett

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Replies

  • Morning Ben

    I agree if this were to appear as a benefit on a P11D for the employee it may have the opposite effect.

    I think my first port of call would be my Accountant or Finance bod to establish what we can provide without it being classes as a benefit for the employee.  There are specfic rules and I know that certain items are allowed, so this would be my first port of call then work backwards from that.

    Kind regards

    Sarah

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