Employer Taxes & Salary Sacrifice

Our employment tax specialists help our clients by advising on tax issues that are relevant for their business or charity and if any potential tax savings are available they will be sure to bring them to your attention.

Many of our clients benefit from an Employment Tax Healthcheck which involves our tax specialist reviewing your current employment tax affairs, remunerationarrow people strategies and compliance with PAYE & NI legislation.

Following the review, you will receive a report outlining where potential savings can be made, and if there are any non-compliant areas, the corrective actions required will be highlighted. If you are interested get in touch.

Pro-active tax planning can save you money, time and it enables the management team to focus on the more strategic employment issues, and running and growing the business.

Whether you are a large or small employer, operate in commercial sectors or you are a non-for-profit charity or public sector organisation, we can advise you on the benefits you can gain from receiving good tax planning advice – both in terms of the tax savings and the additional incentives you can provide to your employees.

Our services include:

  • Review current remunerations schemes for directors and employees to ensure they are fully compliant with the current tax legislation – PAYE & NI.
  • Creating new remuneration and company share-save and option schemes that help to recruit retain and incentivise employees to higher performance.
  • Advising on salary sacrifice schemes, flexible benefits and P11Ds.
  • Company cars and fleet planning.
  • Termination of employment, redundancy planning and advice.
  • Advising on construction industry scheme (CIS).
  • Identifying ways to minimise NIC costs and avoid PAYE errors and the follow-on penalities.

Salary Sacrifice

Salary sacrifice schemes benefit both employers and employees. They truly are a win-win outcome for both. seesaw pig

The schemes are voluntary and result in the employee giving up (sacrificing) part of the cash element of their salary, on which both PAYE and NICs are due, and exchanging the cash element for non-cash related benefits.

The employee benefits as the non-cash benefits are wholly or partially exempt from tax and NICs – so they pay tax on a reduced amount of their gross salary and have access to benefits at a reduced cost.

The employer benefits from having a lower employer NI liability for each employee who signs up to scheme.

There are range of non-cash benefits that can comprise salary sacrifice schemes, these include:

  • Childcare vouchers e.g. to help employees pay for nursery, daycare, holiday club fees.
  • Pension schemes.
  • Holiday purchase schemes – e.g. each employee could be give 20 annual days with an additional 10 available for purchase.
  • Company car schemes – usually on a leasing basis.
  • Parking schemes.
  • Cycle to work schemes.