Services
Audit & Assurance
External, internal and joint venture audit services
Business Advisory
Management accounts, strategic planning, profit improvement, ESG
Corporate Finance
M&A advisory, selling a business, fundraising, valuations, due diligence
ESG
Baseline assessments, materiality assessments, carbon footprint and sustainability reporting
Hotel Accounting
Accounting function, automation, daily reconciliations and dashboards, accounts payable
Payroll & Employment
Payroll, global mobility, employee benefits, employment taxes
Private Clients & High Net Worth Individuals
Tax planning & compliance, tax residence and domicile, trust planning
Restructuring & Recovery
Business rescue, liquidations, administrations, insolvency, debt recovery
Tax
Corporate tax, customs duty, VAT, R&D, tax investigations, international tax
Virtual Finance
Bespoke service providing real-time information about your business performance
More from AAB
AAB PEOPLE
Full-service people consultancy – human resources, learning and development
AAB WEALTH
Financial planning, cash flow modelling, retirement planning
AAB Consulting
Business consultancy helping organisations with the challenge of change
Sectors
Business Services
Professional services, medical, recruitment and media
Construction & Property
Property developers, construction companies, housebuilders, landlords
Energy
Renewables, clean energy, energy producers, energy transition, exploration and production
Family Business
Specialist support for businesses owned/managed by families
Food & Drink
Food & drink producers, processors, importers, wholesalers and retailers
Industrial
Engineering, manufacturing, aerospace, automotive, shipping, distribution
Leisure, Retail and Hospitality
Fashion, entertainment, activity centres, hoteliers
Not For Profit
Charities, social housing, higher and further education institutions
Public Sector
Government, non-departmental public bodies, health boards, ALEOS
Technology
Software companies, tech start-ups, cybersecurity firms, and AI innovators.
About
AABout Us
Our story
Our Team
Meet the specialists
Careers
Join the AAB team
Diversity & Inclusion
Building a business where everyone feels they belong
Growing Sustainably - ESG
ESG – Our commitment to building a sustainable business
News
Latest news from across AAB Group
AABIE
AAB charitable initiative
AAB Wealth expands presence in Central Scotland with acquisition of Synergy Financial Planning
Insights
Blogs
Stay informed with cutting-edge news for business growth. Our experts offer industry insights and invaluable advice on accountancy and business strategies.
Case studies
Explore insightful case studies tailored to specific industries, offering invaluable lessons and strategies for success.
Webinars & Events
Engage with dynamic webinars and events tailored to your interests, offering valuable insights and networking opportunities.
ESG Diligence: The Key To Sustainable M&A Transactions
AAB / Blog / Happy New Year! Is it time for a spring clean already? – Tackling taxation issues
BLOG20th Jan 2020
With the festive season over, the start of a new year gives employers an ideal opportunity for a spring clean of their compliance processes and taxation issues, and to identify any tax planning opportunities.
Particular consideration should be given by employers that have a globally mobile workforce due to the many tax implications which can be created by these individuals, sometimes at significant cost. Nevertheless, there are mechanisms available to alleviate some of these complexities and administrative burdens on both the employer and individual, for which taking a proactive approach can not only help mitigate the chances of tax authorities issuing interest and penalty notices for failure to comply, but also reduce the likelihood of additional audits being imposed.
Net of Foreign Tax Credit Arrangements
For an employee on a UK payroll, should they have a tax obligation overseas alongside a continuing UK PAYE liability, HMRC offer an administrative concession by way of the Appendix 5 Net of Foreign Tax Credit Scheme. In short, this allows an employer to offset the foreign tax against UK PAYE due on the same income thereby giving double tax relief at source. This scheme should be operated ‘real-time’ and greatly assists with cash flow.
Short Term Business Visitors
The arrangement provides for the possible relaxation or complete exemption of PAYE for employees on short-term business visits to the UK. The criteria largely focus on the entity bearing the cost, where the individual is resident, the nature of the duties and the number of days spent in the UK, with greater relaxation and less compliance for lower day counts. It is worth noting that HMRC are introducing revised rules from 6th April 2020 to provide enhanced relaxations for employees from overseas territories with which the UK does not have a Double Taxation Agreement.
Non-resident Directors
Another area of recent HMRC focus is that of non-UK resident directors of UK companies. Many organisations do not realise that such a role carries tax and National Insurance reporting requirements in relation to the performance of duties in the UK. A common misconception is that non-resident directors benefit from double tax treaty protection, however this is not necessarily the case and therefore it is important to have a consistent approach for monitoring where these directors are carrying out their duties and the expenses they incur. With senior management typically being amongst the highest paid, it is easy to see why HMRC pursue and scrutinise the processes and policies adopted by employers.
PAYE Direction for Non-Residents
If you have an employee who works both inside and outside the UK but is not UK resident, there may be eligibility to submit an application to HMRC for a direction to operate UK PAYE only on the percentage (best estimate basis) of the employee’s total earnings relating to work in the UK. This direction would apply to all payments the employer makes (including termination payments and share based remuneration), with the trade-off being that a UK tax return must be completed to reconcile and report the final position.
Retrospective Compliance
Unlike the UK, the majority of countries have a calendar tax year ending 31st December. When considering the energy sector, common examples of countries we typically experience are the United States, Canada, Norway, The Netherlands and Denmark.
On review of your operations, should you believe actions are required in any jurisdiction (as well as the interaction with the UK) for a prior tax year, there are a number of options available to achieve compliance retrospectively (and in some instances reclaim overpaid/undue monies) for which we strongly recommended that you engage with professional advisors to assist.
By David Purse, Payroll & Employment Taxes Director at AAB.
SPEAK TO US ABOUT TAX PLANNING
To find out more about David and the Payroll & Employment Taxes team, click here.
How AAB can help you with
Accurate, efficient handling of payroll functions and employment tax are fundamental to your success. We help you get them right – easing your workload, ensuring compliance in the UK and globally, and keeping your employees satisfied. Our comprehensive services for payroll and employment taxes address all these issues and help you operate efficiently, confidently and compliantly. Whatever the size of your business, from start-up to global player, all the services you require from us will be tailored to your specific needs and integrated to provide seamless support.
Many businesses encounter challenges in implementing their strategies and generating traction. Our business advisory team provides effective tools for business owners at every stage of the lifecycle and approaches to overcome these obstacles. We offer guidance to help you achieve and maintain traction, while also ensuring accountability for you and your team. We can help you to understand your business performance and identify what you can do to improve profit and create time.
Corporate Tax covers a broad and complex area of tax legislation, so we provide a suitably broad and comprehensively experienced team to support your business with pragmatic, commercial advice. Businesses of all sizes and types, and across a wide range of sectors, benefit from our comprehensive corporate tax compliance and advisory service. We have exceptionally knowledgeable tax teams distributed across our offices, ready to support you with their wealth of experience and expertise. We can manage your global tax exposure with a coordinated response that saves you having to seek advice from separate advisors.
Related services