Four years on from the Covid-driven advice to ‘work from home’ if possible, it’s fair to say that its impact has been far greater than most anticipated it would be. What was initially expected to be a short-term response to stopping (or at least slowing) the pandemic in its tracks, has instead driven a far more fundamental appraisal by organisations around how they operate.

In 2024, five days a week in the office is far from the norm, and whilst in the days before Covid the phrase ‘hybrid working’ barely existed, it is now a reality for many organisations and the charitable sector is not immune from that.

Whilst hybrid working has driven many positives for individuals and organisations alike, there remains a need to sometimes encourage team members into the office or another location so that essential company events, meetings and team building activities can take place.

With that, comes a need to appraise expenses and benefits and the tax implications thereof.

Whilst in the past, charitable organisations would often seek to only reimburse expenses or provide benefits that would be subject to the lowest or no tax, the move to hybrid working means they’re no longer ‘nice to haves’, they’re far more important than that.

The reality today is that expectations amongst staff have changed and sometimes a level of incentivisation is required in encouraging staff to join team building and other essential company events. With this shift, comes an acceptance of potentially greater tax implications.

What was once a case of ‘I’ll do whatever has the lowest tax implications’ is now a case of ‘I’ll do what is necessary; what will the tax implications be?’

Charitable organisations, however, must remain mindful of the responsibility to consider the effective and responsible use of funds and whether an increased tax bill is justified.

If you’re left confused by what the key deductions and exemptions are that you need to be aware of when assessing for tax, you may benefit from our webinar that covers exactly that. To request access to the recording, please email us at events@sayervincent.co.uk