The Growing Tax Burden on Workplace Perks

In recent years, UK businesses have been hit with rising costs across the board — from higher Employer National Insurance contributions to increased Corporation Tax. At the same time, many traditional workplace perks have become less tax-efficient, leaving employers questioning whether those “feel-good” benefits are really worth the cost.

The problem with workplace perks

Whether it’s company cars, gym memberships or gift vouchers, most employee perks are now classed as taxable benefits in kind. That means both the employer and employee often end up paying extra — through National Insurance, income tax, or additional administration to stay compliant.

In short, what used to be a simple “thank you” can now carry a hefty tax price tag.

Add to that the continued pressure of inflation, higher wage expectations, and tougher trading conditions, and many business owners are understandably rethinking how they spend on staff benefits.

The smarter alternative: investing in people’s financial wellbeing

That’s where Fincate comes in.

As an allowable business expense, Fincate provides a way for companies to give their teams access to lasting, meaningful financial education — without triggering benefit-in-kind tax implications.

Instead of a short-term perk that disappears after a few weeks, Fincate helps employees build skills and confidence that can last a lifetime. From budgeting and investing to understanding pensions and tax, it’s a benefit that truly empowers your workforce.

And the best part? It supports both the financial wellbeing of employees and the strategic goals of the business — improving retention, reducing stress, and showing that you genuinely care about your people’s futures.

In a climate of rising costs, make your rewards count

When every pound of business spend needs to work harder, it’s time to move away from superficial perks and towards benefits that actually make a difference.

By choosing Fincate, employers can reward staff in a way that’s both cost-effective and future-focused — helping create a happier, more financially confident workforce, while staying fully tax-efficient.

Fincate – the smarter way to reward your team.