Our accountants and tax advisers will explain all of the available employment tax options you may want to consider
When businesses think about tax they usually start with compliance or planning and tend to approach these from the perspective of the business itself. However, if you employ staff there are a number of additional employment tax issues you should consider.
Depending on how your business is structured and how you employ and pay your staff there may be some things you could do slightly differently to maximise your tax efficiency. We will work with you to identify those potential changes, work out which would have the most positive impact on your staff and your business and talk you through the easiest way to implement them.
The types of things we’d look at could include:
- New share incentives. You may want to consider Enterprise Management Incentives (EMIs), Company Share Option Plans, Share Incentive Plans or Save As You Earn Share Option Schemes.
- Your employees’ or workers status. Your PAYE and National Insurance (NI) contributions will vary depending on whether your members of staff are employed or self-employed. We can calculate which would work best for you.
- IR35 contractors. In some cases it may be better to contract rather than hire staff. We can discuss the advantages of contracting in more detail and scope out the different possible scenarios to help you make the right decision.
- Your Payroll processes. All of your UK employees need to be enrolled in your PAYE (Pay As You Earn) scheme and registered with HMRC. We can help you find a more efficient way to manage that process and ensure you and your employees are being taxed correctly.
- Remuneration planning. Good remuneration packages attract the best staff. We can help you create these packages by exploring more tax efficient remuneration strategies, retirement planning, termination and inducement payments and company car and van options.
- Expenses and benefits. If you pay any expenses or offer employee benefits they must be declared to HMRC so they can be taxed correctly. We can help you prepare those declarations (complete with individual P11d forms if required) so you don’t end up facing any unwelcome and unnecessary fines.
- Salary sacrifices schemes. Many companies now provide a salary sacrifice scheme as it reduces their NI contributions and their employees’ taxable income and NI. We can help you launch a salary sacrifice scheme that offers the non-cash benefits your employees really want.
- International compliance. If you regularly trade internationally or are considering expanding overseas, you will need to adhere to the different tax regulations in every territory. We will guide you through the details and, if we need to, introduce you to a trusted local adviser in our established international network.
- The Construction Industry Scheme. Special tax rules apply to subcontractors working in the construction industry and the rules are outlined in the Construction Industry Scheme (CIS). We can help you register for the CIS and talk you through the regulations and make sure your construction business remains fully compliant.
- HMRC investigations support. And if HMRC challenge any of the changes you decide to make, we will remain on hand to help you answer all of their questions and, if we need to, accompany you to a tribunal.