In general employees are usually the most valuable yet most expensive part of any business. Many businesses underestimate the importance of a structured remuneration policy that properly balances fixed and variable pay. A co-ordinated policy can greatly improve recruitment, retention and motivation without adverse cost implications. Methods used for rewarding present and future employees, or compensating employees leaving the business can be structured tax efficiently to generate significant cost savings.
The area of employment tax has undergone massive change in recent times and continues to be subject to ongoing amendments each and every year. Simply staying in touch with the current rules for most employers is extremely challenging.
If you are looking for comprehensive guidance or just an independent opinion on all aspects of UK employment taxation (including NIC) then please read on.
The sort of areas which we are normally involved with include:-
1. HMRC Investigations
This area is too broad to cover in just a couple of paragraphs, as the type of review and department of HMRC conducting it will, to a large extent, dictate how you manage the review effectively. However, rest assured that our staff are used to handling HMRC reviews for employers ranging from some of the largest in the UK to one employee/owner managed companies. If you need help with just one issue or with handling the entire audit then we are here to help.
We can take the stress out of a stressful situation. As we are familiar with HMRC’s procedures we can reduce the time taken for the review and hence its disruption to your business. We can also ensure that you only settle what is due by bringing a wealth of knowledge and experience to bear on your side. The earlier in the process you call us the more chance there will be of us saving you money, time and effort so please make the call sooner rather than later!
If you have not yet had a review or even had that dreaded letter from HMRC initiating one, then there is scope for you to effectively postpone, possibly indefinitely, your company's chance of having one. A few simple procedures addressing your perceived risk areas could be all that it takes to lower your risk score.
A HMRC review can be incredibly costly not only in financial terms but also in terms of time and overall disruption. You can therefore mitigate this risk by effectively managing your tax affairs from now on. If you want to know what to do or just want to understand your company’s current exposure then please give us a call as we would love to help!
2. Employment status
Do you currently have any self employed contactors working for you on a gross payment basis? If you do it is likely that HMRC are aware of the position and that this has already affected your company's HMRC risk assessment! A reclassification of a self employed worker to employee has immense financial implications for your company.
Self employed consultants are an extremely valuable business resource, giving flexibility and expertise for a reduced cost compared to employment. Manage the compliance risk and your business can benefit from this labour resource with confidence! If you want to reduce your risk or just take the first step in managing this issue then please give us a call.
3. The construction Industry Scheme
This continues to be an area of great interest for HMRC. The change of rules from April 2007 have come and gone but the repercussions go on!
We currently run a number of schemes for contractors and advise on many more. If you want to remove the confusion or simply have an alternative, independent opinion on the application of the scheme then please call us as we will be glad to help.
4. Termination payments.
Contrary to popular belief the first £30,000 for all termination payments is not necessarily tax free. In fact there are at least three different pieces of legislation through which each element of the termination payment will need to get through before it can form part of the £30,000 tax free limit.
Planning the process is therefore essential to ensure that the tax, for both the company and the former employee is mitigated to its fullest. Please give us a call at the consultation phase, or earlier, to ensure that the tax free option remains available for the benefit of all concerned, at what can be a difficult time.
5. Salary sacrifice!
This is a very attractive benefit to some members of the work force and is often associated with childcare, the bike to work scheme, enhanced subsistence payments(although great care should be taken here!) and pensions.
Care must be taken with the wording of the scheme and its application, but if done correctly then they can be extremely advantageous for both employer and employee alike.
Many providers stipulate that their scheme has general HMRC approval, but this is unlikely to be the case as HMRC approve schemes on an individual basis. We understand the employment law and employment tax issues associated with salary sacrifice, and given our extensive experience of dealing with these issues, we can help you to understand your company’s risk and mitigate it effectively.
If you are considering implementing a salary sacrifice or flexible benefits scheme which seeks to convert taxable salary into a non taxable benefit then please contact us for an initial, no obligation consultation.
6. Expenses and benefits,
Maintaining up to date policies not only ensures that your company and its employee’s benefit from the many tax allowable provisions currently in place but can also have the effect of reducing your company’s HMRC risk assessment. This in turn reduces it’s risk of a HMRC employer compliance audit.
As a general policy I would suggest an annual review of your company’s expense and benefits policy to ensure it accurately reflects the current legislation and HMRC practices. Where your company acquires other businesses or expands into additional offices, especially overseas, then I would say a review of the expenses and benefits policy becomes essential. We know the rules and what you can and cannot get away with. Please give us a call if you want help in this area!
7. PAYE Settlement Agreements (PSA’s), Tax Award Schemes (TAS), and P11D dispensations:
These can all help to simplify your company’s compliance burden as well as mitigating its overall HMRC risk assessment. If you want more information on any of these areas then please do give us a call!
8.Payroll
It is generally believed that operating a payroll with today’s software solutions is largely routine. Just plug in the numbers, press a button and away you go!
Unfortunately, with the continuing expansion of NIC and the every changing rules and regulations concerning the operation of PAYE, SMP, SPP,SAP, SSP, Student loans etc… nothing could be further from the truth. If you are new to running a payroll or if you have been running one since time began and simply want an independent review then please call us as we will be glad to help!
Our technical consultants are all ex ‘Big four’ staff and are used to dealing with employers of all sizes on a large variety of issues. If you are starting from a position of no knowledge at all or are simply looking for reassurance that your understanding of a particular issue is correct then please give us a call as we’d love to talk to you about tax!
You will find our rates extremely completive, being less than half the price of those generally associated with this type of service.
Your first call and usually the first meeting will of cause be free of charge and from then on we operate on a policy of price transparency. i.e. we like to inform you of the likely costs of doing any project in advance so that there are no surprises. If possible we like to provide fixed fee quotes to ensure that all are happy before we commence.
