Salary sacrifice - Unlocking tax and NIC savings
Below, we explore the benefits for employees and employers of salary sacrifice and the areas employers need to consider ahead of implementing a salary sacrifice arrangement.
Employment tax
Our employment tax & reward team helps organisations to grow, mitigate and navigate their tax risks more effectively.
We help organisations enhance reward to retain key talent and boost recruitment whilst managing costs, as well as help put robust and reasonable governance controls in place across key risk areas.
To give you an idea of where we can support and add value, we set out a range of the employment tax services we provide below
Our Employment tax services
- Employment Status & “IR35” governance
- Coronavirus Job Retention Scheme and furlough
- Benefits and expenses compliance and strategy, including Forms P11D and PAYE Settlement Agreements
- HMRC reviews and Payroll compliance
- National Minimum Wage – helping manage compliance and establish effective reward programmes
- Construction Industry Scheme
- Termination Payments
- Pension Salary Sacrifice
- Optional Remuneration
- Flexible working and Relocation
- Sustainable Reward
- Gender Pay Gap analysis
- Company Car/Vans and travel policy advice
Get in touch with our Employment tax team
If you would like to discuss how our tax professionals can help you, please contact us via the form below.
20 August 2024
National Minimum Wage & Living Wage: A new era
A new era for National Minimum Wage and National Living Wage.
4 June 2024
Engaging Office Holders Off Payroll – The Pitfalls
It is commonplace for many financial services firms to engage office holders through an off payroll working arrangement, especially where duties are occasional. Here, we explore the potential pitfalls of such arrangements and how businesses can avoid significant liabilities arising on the fees they are paid.
Double cab pick-ups – van or car for tax purposes?
Will the rules change from 1 July 2024? HMRC announced on 12 February 2024 a change of classification of company vehicle double cab pick-up (DCPU) trucks for income tax (P11D) purposes from van to car which was due to come into effect from 1 July 2024. However, following feedback, the government has now done a full U-turn and confirmed this is no longer taking place and the guidance and legislation...
What the changes in NMW & NI really mean
The Autumn Statement 2023 brought both good and bad news. As we now move into 2024, the announcements relating to the National Insurance reduction for employees and the increase to the National Minimum and Living Wage (NMW for simplicity) start to become very real. These announcements represent a real challenge for employers, particularly given the freeze in the employer NIC rates and thresholds...
Time to take care in the care sector
In 2022, an estimated 18,000 adult social care organisations in England, were involved in providing or organising adult social care. Inevitably, there are issues to consider when looking at recruitment, reward, and retention for the estimated 1.635 million workforce [1].
Christmas Cheer or Bah-Humbug?
As we fast approach the festive season employers may be thinking about rewarding their employees by way of a Christmas party or by way of a Christmas gift. However, what are the tax implications of this, and what do employers need to consider when thinking about the overall costs?
HMRC update - National Insurance & car allowances
10/11/2023. Businesses across the UK who pay car allowances and reimburse business mileage at less than 45p per mile have an opportunity to reclaim National Insurance Contributions (NICs) going back six years following a recent landmark ruling from the Upper Tier Tribunal in the cases of Laing O’Rourke and Wilmott Dixon.
How to avoid National Minimum Wage breaches
The Low Pay Commission (LPC) estimates that around 1.6 million workers were being paid at or below the minimum wage in April 2022 – that’s 5% of all UK workers. However, with the minimum wage rates increasing and pay differentials reducing, combined with the complexities of the minimum wage legislation, it’s not just those low paying roles at risk anymore.
NIC reclaim opportunity – can my business claim?
Following a recent tribunal case involving HMRC, it was found that car allowances can be treated as relevant motoring expenditure. This means many businesses could now be due a refund of NIC from HMRC for previous tax years.
National Minimum Wage – It’s not child’s play
The childcare sector has been hitting the headlines over the past months. Examples include the government’s plans to extend extra childcare during term time [1] and more recently an article highlighting the rapid growth of private equity investment into the sector and the associated risks of what some cite as “profiteering and failure” [2].
Should you review your NMW processes and controls?
202 employers have been found in breach of NMW and have been named in the Department of Business & Trade’s National Minimum Wage Naming Scheme.
HMRC National Minimum Wage enforcement campaign
01/06/2023. We are aware that HMRC are currently targeting a number of employers on NMW compliance processes.
What is a P11D and the key areas to consider
26/05/2023. What is a P11D and when is the deadline? A P11D is a form submitted to HMRC where employers report any taxable benefits and expenses provided to their employees or directors that are not included within their salary. The deadline for P11D reporting for the 2022/23 tax year is 6 July 2023.
NMW update: optional work-related expenses
Unreimbursed work-related expenses incurred at the choice of a worker will now reduce their pay for National Minimum Wage (NMW) purposes, following the impact of a recent decision made by the Employment Appeal Tribunal.
IR35 accounting and tax advice
From April 2021, changes will be introduced to the Off-Payroll Working (OPW) regulations. Our Employment Status specialists can help you ensure you are prepared for these changes and remain compliant.
Don't forget your reporting obligations
With the 2020/21 tax year now over, employers should consider if they have any reporting requirements in respect of Benefits in Kind (“BIK”), expenses or Employment Related Securities.
Managing risk and enhancing employee engagement
Key ways businesses can manage risk and enhance employee engagement in 2021/22, including home working, travel, and training recommendations.
Employer Tax Calendar 2022-23
Download our Tax Calendar to remain compliant with employment tax in the new financial year.
Don't sleep on National Minimum Wage compliance..
The Supreme Court has ruled ‘sleeping time’ is not working time in the care sector for National Minimum Wage (NMW) purposes.
Understanding National Minimum Wage changes
The National Minimum Wage (NMW) has garnered a lot of attention recently but perhaps one area that has gone a little under the radar are the increases from 1 April. There are, however, some options for change that employers could consider in order to adapt to the new Post Covid-19 economy and work dynamics.
CJRS and furlough suppport for employers
With over 200 changes to HMRC’s guidance and numerous Coronavirus Job Retention Scheme (CJRS) Treasury Directions published, navigating compliantly through the maze of the CJRS has not been easy.
Positive change for the environment & employees
08/03/2021. Employers can review their reward strategy and align it with their environmental goals to make positive change to employee pay and benefits as well as the environment.
Our Employment Tax team
Jim Boylan Partner - Employment Tax
Patrick Crookes Director - Specialist Tax