Employee Benefits

Employee Benefits

Rangers tax scheme kicked into touch

August 4th 2017

There has been a long running tax case rumbling through the lower courts on the use of a device called an Employee Benefit Trust (EBT) by Glasgow Rangers. HMRC have considered the use of the EBT a scheme to avoid PAYE and NIC.

New rules for salary sacrifice arrangements

May 19th 2017

Salary sacrifice arrangements used to be a cost efficient way of allowing employees to enjoy tax-exempt benefits without passing the cost of providing those benefits on to the employer. However, changes in the rules which came into effect from 6 April 2017 mean that salary sacrifice and flexible benefit schemes are no longer as attractive as they once were.

All change for driving instructors and learner drivers

May 2nd 2017

Driving instructors will have a tough time this year. Many are sole traders and will need to start changing their record keeping to accommodate the challenges of Making Tax Digital, either April 2018 if their turnover is above the VAT registration limit (presently £85,000), or April 2019 if their turnover is below this limit.

What are approved mileage payments?

May 2nd 2017

Mileage Allowance Payments (MAPs) are the rates used by employers to reimburse employees when they use their own transport for business purposes. The current rates are well-known. They are:

End of the road for salary sacrifice schemes

February 1st 2017

Under a salary sacrifice arrangement, the employee gives up an amount of cash salary in return for a benefit in kind. Where the benefit is exempt from tax and National Insurance, the employee saves the tax and primary Class 1 National Insurance that would otherwise be payable on the cash salary and the employer saves the associated secondary Class 1 National Insurance.

Employees - same rules for all

January 18th 2017

The same rules now apply to tax expenses and benefits regardless of how much the employee earns and whether he or she is a director. The old £8,500 threshold was abolished from 6 April 2016. Since that date, employees who were previously P9D employees are taxed on any benefits in kind they receive in the same way as for P11D employees. This means that benefits such as company cars and private medical insurance are now taxable if the employee earns less than £8,500.

Planning the Christmas celebrations

December 9th 2016

If you are involved in planning the staff Christmas party for your firm don’t forget to consider the Income Tax and VAT consequences. Here’s a short reminder of the points you should add to your check list.

Salary sacrifice under the microscope

December 9th 2016

Salary sacrifice is a term applied to benefits taken in place of salary. In many respects these benefits provide employees with higher “take home” value than if the benefits were treated the same as cash income. Mr Hammond is mindful to curb this practice as it is intended that the change will add £1bn a year to tax revenues by 2020.

Car fuel advisory rates changes

January 15th 2016

From 1 December 2015, the advisory fuel rates have changed to:

Repaying employers for private fuel

December 16th 2015

Company car drivers should be giving consideration to the issues raised in this article if they are provided with fuel for private mileage by their employers.