Tax Free and Low Tax Benefits

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As the world grapples with the challenges of climate change and environmental degradation, businesses are increasingly recognising the need to adopt eco-friendly practices. In this blog, we explore tax-free benefits that can incentivise both businesses and employees to embrace environmentally friendly choices.

Electric cars and vans

Electric vehicles (EVs) have emerged as a viable alternative to traditional combustion engine vehicles, offering reduced emissions and lower environmental impact. In recognition of their eco-friendly attributes, tax benefits are often provided to businesses and individuals who choose EVs, such as full immediate tax relief for the employer, and very low income tax charge on the employee’s benefit-in-kind.

Mobile phones

Providing tax-free benefits for energy-efficient mobile phones promotes sustainable choices. Encouraging the use of devices with longer battery life, recyclable materials, and energy-saving features contributes to reducing e-waste and minimising environmental impact.

Subsidised travel

Promoting sustainable commuting options is essential in reducing carbon emissions from transportation. By offering tax-free benefits, such as subsidised public transport passes or bicycle purchase schemes, businesses can encourage employees to opt for greener modes of travel, thereby reducing the environmental footprint associated with daily commuting.

Small loans

Tax-free small loans can be utilised to support environmentally friendly initiatives for employees. Whether it’s financing energy-efficient equipment upgrades or investing in renewable energy projects, tax-free and interest free loans can incentivise employees to adopt sustainable practices.

Staff parties

Staff parties serve as important occasions for team building and boosting employee morale. By providing tax-free benefits for staff parties businesses can organise eco-friendly and sustainable events, showcasing their commitment to environmental responsibility.

Trivial benefits

Trivial benefits, such as gifts or rewards, offer an opportunity for organisations to recognise and appreciate their employees’ efforts. By extending tax-free benefits of up to £50 per item for trivial benefits, businesses can choose eco-friendly gifts or experiences, promoting sustainable consumer choices.

Pensions advice

Supporting employees’ financial well-being is crucial, and tax-free benefits for pensions advice can help individuals make informed decisions about their retirement plans. By including environmental, social, and governance (ESG) factors in pension advice, businesses can encourage sustainable investment practices, aligning financial goals with responsible environmental stewardship.

Lunch and refreshments

Under the works canteen rule, tax-free benefits can be provided for subsidised or free meals and refreshments offered to employees. This can encourage the provision of sustainable and nutritious food options, promoting employee well-being and reducing the environmental impact associated with food production and waste.

Workplace electric car charging facilities

As electric vehicles become more prevalent, providing workplace electric car charging facilities is a valuable tax-free benefit that supports both employees and the environment. By offering convenient access to charging infrastructure, businesses encourage the adoption of EVs and contribute to reducing greenhouse gas emissions from transportation.

Working from home allowance

The COVID-19 pandemic accelerated the adoption of remote work practices. To support employees working from home, businesses can provide a tax-free allowance of £6 per week. This benefit recognises the environmental benefits of reduced commuting and encourages a more sustainable work-life balance.


By leveraging tax-free benefits, organisations can incentivise sustainable practices, such as adopting electric vehicles, investing in energy-efficient equipment, and promoting eco-friendly employee perks. These incentives not only contribute to a greener future but also enhance corporate social responsibility and employee engagement. By embracing green technology and harnessing tax-free benefits, businesses can take meaningful steps towards a sustainable and environmentally conscious future.


Please get in touch if you would like to discuss this further.