Employment tax is a field encompassing all the different elements of the tax and social security considerations involved when you have directors and staff. In most cases the first thing that springs to mind will be PAYE (tax and social security withholding) but this is usually just the starting point. Global Eyes can help guide you through the maze.
Do all employees need to be put on a payroll so that PAYE can be deducted? If not, why not? There are a few good reasons why certain people might not need to be on a payroll, but you need to be able to explain your reasoning if HMRC carry out a payroll audit on your business. We have been giving payroll advice for many years and our extensive experience can help you navigate the UK payroll rules.
Do you use contractors in your business? Have you assessed whether the off-payroll working rules need to be applied and would you be happy to stand by your assessment if challenged by the authorities? With the rule change from April 2021, HMRC will certainly be looking at this closely over the next few years and checking whether businesses have got it right. Global Eyes can walk you through the decision-making process so that you can be confident that you have things right when checks are announced.
Do you provide benefits and/or expenses to your staff – maybe medical cover, company cars or mobile phones? The UK levies benefit in kind tax and social security charges in respect of most benefits and the calculation of these charges may not always be as simple as the cost to the employer of providing the benefit. We can help with preparing statutory forms P11D and P11D(b) where required, or PAYE Settlement Agreements if the employer is picking up the tax and social security bill on qualifying items on behalf of their employees.
Have you needed to consider redundancies or the termination of employment for some of your staff? Global Eyes Tax Services can give you advice about the tax treatment of the different elements of a termination package, including statutory redundancy pay, enhanced redundancy pay, garden leave, payment in lieu of notice and others and can work hand in hand with your legal team as necessary.
Are your staff policies up to date in areas such as expenses and benefits, overseas trips ? If required, we can review the expenses and benefits sections of your staff handbook to ensure that what you’re offering is up to date in terms of the tax and social security provisions. The legislation changes frequently and a review every few years can ensure compliance with the law and that any tax exemptions can be taken advantage of. We can conduct reviews and suggest improvements to make sure your internal policies are current and workable.
If you’d like to talk to us about Employment Tax services please, Contact Us.