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Employee Benefits

It’s important to incentivise your valued employees, and equally essential to do so in a way that’s tax-effective and correctly reported to HMRC. Our experts’ advice can help you offer benefits that attract and retain employees tax-efficiently.

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  • Richard Petrie
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  • UK entities. Multinationals. SMEs. Privately Owned & Listed Businesses. Public & Social Sector Organisations.

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  • IR35 Off-Payroll Working. Payroll. Global Mobility. UK Employment Taxes. Overseas Employment Taxes. Expatriate Taxes. Systems & Software.

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THE BEST BENEFITS FOR THE RIGHT REASONS

The employee benefits you offer will need to reflect the individuals you want to incentivise and what your competitors include in their packages. We’ll ensure we fully understand your needs, so we can recommend the benefits that will work best for you.

We provide an extensive and diverse employee benefits consultancy service, offering end-to-end, whole of market solutions, from initial planning and advice through to successful implementation.

Tax on employee benefits is complex, so we’ll point out the tax implications, make your options clear and help you decide which benefits provide the best balance of employee appeal and tax-efficiency.

EXPLAINING THE OPTIONS

The range of benefits and their pros and cons can seem bewildering, particularly when it comes to tax. We’ll make sense of them for you and guide you in your decision-making. Our advice and support are mostly focused on:

  • Pension Schemes
  • Auto enrolment solutions and advice
  • Scheme administration
  • Employee advice and support
  • Private Medical Insurance
  • Group Life Assurance
  • Group Income Protection
  • Group Critical Illness
  • Dental Insurance
  • Health Cash Plan
  • International Benefits

We know your employees will also appreciate clear explanations of what’s entailed and how they’ll benefit, so we can also provide face-to-face support at your premises and discuss issues with them individually if required.

HOW WILL THAT IMPACT TAX?

Collaborating with our tax planning and payroll specialists, we’ll give you an integrated, all-round view of how you can offer worthwhile benefits whilst minimising tax liability. We’ll also help reduce your administrative burden, by advising on the most effective processes for ensuring compliance.

For example, we can help with:

  • Assessing the impact of proposed benefits packages on your employees’ tax and NIC.
  • Creating the most tax-efficient benefits packages
  • Advising on systems and processes to deal with expenses
  • Identifying taxable employee benefit to be deducted through payroll
  • Submitting P11D and P11D(b) forms to HMRC, for staff receiving taxable expenses or benefits.
  • Advising on non-taxable benefits and qualifying for tax or class 1A NIC exemption.

THE BIGGER PICTURE

There are other benefits you can offer within remuneration packages, that have attractive income and capital gains tax benefits both for you and your employees. Key amongst these are Employee Share Schemes, such as the Enterprise Management Incentive Scheme and Company Share Option Scheme.

These can be very effective at motivating employees without need to offer them a higher salary, but there can be tax penalties if the type of offers made are not HMRC-approved. You’ll find more about these on our Entrepreneurial Tax Advice page.

In addition, we can advise you on:

  • Benefit policy reviews & audits
  • Benchmarking company benefits
  • TUPE support for sourcing and harmonising of benefits.

ARE ALL BENEFITS TAXABLE?

The short answer is no. The long answer is one we’d discuss with you. The following are some of the benefits that often do not attract tax, but this is not always the case:

  • retirement benefits paid into an employee’s registered pension scheme
  • reimbursing additional household costs for employees who work at home
  • relocation expenses (up to £8,000 per move)
  • cheap or interest-free loans up to £10,000
  • sustenance at work: drinks and light refreshments, and meals in your staff canteen
  • parking at or near your workplace
  • providing one mobile phone per employee for work purposes
  • workplace nursery places for your employees’ children
  • sports facilities at your premises
  • social functions up to £150 per year per employee
  • trivial benefits up to £50 per employee, covered by an annual price cap. This can be complicated, so we’ll explain it personally.
  • AAB proactively assisted in addressing any potential risk areas relating to Corporate Criminal Offence legislation in our business and ensured a successful solution was implemented in conjunction with our legal, tax and finance teams.

    Dave Aitken, Interwell

  • Routine monthly processing has been faultless and my dealings with the payroll team over the year end have been excellent. A breath of fresh air to be dealing with such an excellent service.

    James Thom, Scotia Instrumentation

  • AAB helped to build the Workflow Max application around our business needs ensuring that it met the very specific project requirements. From implementation to the present day, AAB have provided all the support and training we need.

    Mark Burntonwood, Director

  • Since we established Exodun Trust we have worked with AAB to prepare our accounts and assist in the production of our annual report. We have a really good relationship with the team and find their professional approach warm, helpful and supportive.

    Meg Duncan, Exodun Charitable Trust

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