What allowances do employers commonly offer in the United Kingdom?
All allowances in the United Kingdom are seen as additional salary and taxed accordingly. Therefore, employers have the option of providing employees with grossed-up allowances.
Common allowances include:
- Phone allowance. £60–120 per month. Velocity Global encourages a mobile phone allowance as mobile phone bills cannot be expensed in the United Kingdom.
- Internet allowance. £40–70 per month.
- Car allowance. £400–900 per month. This is a common allowance for employees who travel to meet with their clients.
Rare allowances include:
- Housing allowance. This allowance is something Velocity Global can facilitate if desired. However, if your supported employee is hoping to purchase a property, a salary increase may be more beneficial.
- Gym allowance. This is not a common offering, but a typical range is £100–150 per month for this allowance.
What should my company offer as a work-from-home (WFH) allowance in the United Kingdom?
A work-from-home allowance is neither mandatory nor common in the United Kingdom. If you elect to provide this allowance, the amount is up to your discretion.
What considerations are there around meal allowances and reimbursements?
A meal allowance can be stipulated within the employment agreement and paid on a monthly basis. Any meal reimbursement, with receipts, submitted via Expensify will be taxable and cannot be treated as nontaxable.