One of the largest cost outlays for your organisation will almost certainly relate to recruiting, retaining and rewarding employees.
We advise employers of all sizes, from start up businesses to large companies on a range of cost-effective and tax-compliant remuneration and employee incentive solutions.
A well-planned employee incentive package can result in direct financial benefits for both the employer and employees. It will also help with recruitment, retention and motivation, which can result in further financial success and higher levels of job satisfaction throughout the organisation.
We also provide advice and assistance with PAYE and National Insurance compliance, including providing vital support to employers who are undergoing an HM Revenue & Customs Employer Compliance Review.
Employee share schemes can be a particularly cost effective and tax efficient form of remuneration. They can also foster greater long term loyalty and motivation than a remuneration package consisting only of salary, bonuses and benefits.
We help many of our clients in implementing the right employee share schemes and can help design and implement a scheme, liaising with HMRC on your behalf.
The most suitable approved share reward for small and medium sized companies are Enterprise Management Incentive (EMI) schemes. Such schemes carry income tax, national insurance and capital gains tax advantages, and are extremely flexible. We can assist in all aspects of such schemes including advance assurances from HMRC, preparing a share valuation and agreeing it with HMRC, liaising with a solicitor to produce the agreement and registration of the options with HMRC.
Engaging workers on a self-employed basis can result in significantly lower tax and National Insurance costs for both the worker and their client. This is useful but you need to be aware that HM Revenue & Customs (HMRC) can and do challenge self-employed status.
If they are successful in categorising a previously 'self-employed worker' as an employee they will normally pursue the employer for what it regards as historic unpaid PAYE and National Insurance. When interest and penalties are included the financial settlement can be substantial.
We can help you to minimise any risk of this by reviewing your engagements and looking at minimising the risk of any challenge by the HMRC.
If you challenged by the HMRC, we can help you in your response. This often reduces and in some cases eliminates the final amount you would have to pay back.
The intermediaries legislation was introduced on 6 April 2000. It is now commonly referred to as 'IR35'. The purpose of the legislation is to eliminate the avoidance of tax and National Insurance Contributions (NICs) through the use of intermediaries, such as Personal Service Companies or partnerships, in circumstances where an individual worker would otherwise:
- For tax purposes, be regarded as an employee of their client; and
- For NICs purposes, be regarded as employed in employed earner’s employment by their client.
We can help with :
- Clarification on current HMRC legislation and interpretation.
- Advising on whether IR35 legislation is relevant to your specific engagements/contracts.
Review of current contracts and feedback on whether they fall within the scope of IR35 legislation.