Mid-year 'cost of living' payment

Hello

I am interested to find out what other companies are doing in respect of making any financial contributions to staff who work from home. 

If anyone is prepared to share what they are doing or their thoughts I'd be grateful.

Many thanks

Carol

Hi Carol - we've introduced a £320 payment for FT homeworkers.

Is this just paid as a bonus, so Taxable?

Health cash plans are normally classed as a Benefit in Kind for tax purposes

Hi, sorry, my question was in response to another comment which was the one off cash payments. e.g. £300 cost of living payment. Are those just "bonuses", so fully taxable.

Yes cash bonuses are subject to tax and NIC.

Yes cash bonuses are subject to tax and NIC.

In case of interest, we have a new CIPD blog looking at how interventions to help low-waged workers during the cost-of-living crisis (such as a bonus) can cause unintended consequences for those on universal credit community.cipd.co.uk/.../why-employer-cost-of-living-help-can-fail-universal-credit-claimants I hope you find it both interesting and informative

The CIPD's Labour Market Outlook for Autum 2022 has been published. This issue has a section (6) on employer responses to the cost-of-living crisis. For example, 72% of respondents expect their employees’ financial situation to worsen over the next 12 months; 12% of employers plan to give all their staff a lump sum to help them deal with inflation in the next year, while a further 10% plan to give some of their staff a similar payment; and 37% aren't confident that they will be able to support their employees’ financial wellbeing over the coming year. More at www.cipd.co.uk/.../labour-market-outlook-autumn-2022_tcm18-112526.pdf