Motivating and retaining staff is one of the most challenging aspects of running a business. This is often acheived by offering staff a combination of cash and non-cash rewards. From a tax perspective, there are income tax and national insurance deductions that will need to be paid to HMRC. We offer a range of services including:
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Cash is king! Most people are interested in this so make sure your rate is competitive.
A well structured bonus pool will get the best out of staff. Keep goals realistic.
A long term incentive and non-taxable benefit. Explain the benefits to your staff.
A great way to tie in staff for 2-3 years. Go electric to take advantage of the current tax breaks.
Allow staff to buy/sell holidays and award additional days for each year worked.
A great way to show you care about staff and their families. The company gets a tax deduction.
Give financial comfort to your employees family in case of a death in service.
Turn top performers into ownners. Tax incentivised schemes are available.
Offering tax-effective benefits to your employees goes a long way to creating a more satisfied, happy and productive workforce. Talk to us about the available benefits and the tax implications. #tax
Not sure about the tax implications of giving gifts to your employees? We’ll help you to make sure any gifts don’t unintentionally fall outside HMRC’s Trivial Benefits rules #tax #gifts
Taking on your first employee? Did you know you need to provide a workplace pension scheme? Talk to us about running and managing your pension contributions and admin. #workplacepensions #pensions
Finding the right balance of "stick and carrot" is the key to motivating and retaining staff. Understanding your employees mindset can help you achieve your goals!
The Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your husband, wife or civil partner. This reduces their tax by up to £252 in the tax year... #tax #accounting #VAT
Thinking of employing a family member in your business? Come and talk to us about planning out the right considerations around pay, benefits, and tax-efficiency. #tax #family
Increases to National Insurance contributions (NICs) are on the way. But do you know the full implications for you and your business? We’ve got the lowdown. #NationalInsurance #planning
Not sure if your summer / xmas party is tax-deductible? Talk to us. We’ll explain the rules and can help you claim against your company party costs. #expenses #staffparties
See our blog which explains what a tax efficient strategy looks like for directors.
It is tax and national insurance contrbutions you must deduct from your employees each month and pay over to HMRC. As an employer, you must also pay employer national insurance contributions on the salary you pay staff. The rates of tax and national insurance and the bands to which they apply change each year.
If you provide non-cash benefits to staff such as cars, medical insurance, life insurance or examination grants these must be declared on a P11d and submitted to HMRC. The employee effectively has to pay income tax on these benefits and their tax code is normally adjusted to reflect this. As an employer, you usually have to pay national insurance contributions of 13.8% on these benefits. The rules are complicated and each benefit has a different tax and national insurance impact. Click here for full reporting and tax implications of the various benefits.
As an employer, you must enrol qualifying staff onto your company pension scheme. For the 2021/22 tax year, the minimum contribution is 8%. Contributions are required on the earnings limit which is £6,240 - £50,270. As an employer, you must make a 3% contribution and your emplyee makes a 5% contribution.
Your staff can choose to opt out at any time. If they opt out within one month, any contributions already made will be refunded (shown as a refund on the payslip the following month). They will receive a letter from the pension provider within a week of being opted in and they will need to contact the pension provider directly. You will then receive notification telling you they have opted out.
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The package for a top executive is different to a sales person. Understanding what drives and motivtes them is key to putting together a package. You want the maximum return your "investment"
Rewarding staff by reason of their employment has income tax and national insurance implications. Don't get caught short.
The reporting requirements are complex and mistakes will be costly. Outsourcing is the best decision to reduce your risk of things going wrong.
