The business of employing people is full of pitfalls and for many employers, their biggest cost. It is an area where every organisation needs specialist help. If you don’t have the resources for an in-house HR team it can be a challenge to co-ordinate the range of expert help you need.
As a first step, the basics needs to be in place including:
- Having a payroll provider who can integrate with you seamlessly dealing with data flow, reports and payslips in a digital environment if that is required and who understands the importance of payroll linking in to auto-enrolment pension compliance;
- Being able to understand your reporting requirements in respect of reimbursed expenses and taxable benefits;
- Having an up to date P11D agreement in place to reduce the need to report to HM Revenue & Customs expenses which are not taxable; and
- Including taxable benefits where you do not want your employees to bear the tax cost in a PAYE Settlement Agreement with HMRC.
Once the basics are in place we would be delighted to work with you to look at employee reward packages and recommend any changes to be made to make them more tax efficient, easier to operate and more attractive to the employees. This could include identifying what tax free benefits could be provided, salary sacrifice schemes and share incentive arrangements such as Employee Management Incentive schemes.
Also, it is an inevitable consequence of being an employer that HM Revenue & Customs will carry out periodic compliance checks. We can help prepare for these by carrying out full PAYE healthchecks and also provide full support during a compliance visit including negotiations of any liabilities identified by HMRC and advising on any steps to take to minimise exposure in the future.