Employment tax

As an employer, you face the challenge of attracting, retaining and motivating employees on the one hand, while controlling employment costs and managing your tax risk on the other. Read more for practical support which covers a host of areas, from tax efficiency and compliance to incentivising your employees.

Undertaking labour supply chain due diligence for off-payroll workers

25 June 2021

With the changes in the IR35 rules, it is now more important to undertake due diligence on your labour supply chains. Failure to do so could result in tax and NIC liabilities.

Have you paid additional employee expenses, or changed the benefits you provide, due to coronavirus?

27 May 2021

Many employers have had to adapt their usual expenses and benefits to support employees during the coronavirus pandemic. Which of changes might be taxable?

Don’t forget – annual share plan return filing deadline on 6 July

27 May 2021

The deadline for employers to file their annual 'employment-related securities' (ERS) returns for the 2020/21 tax year is fast approaching. Read more to find out if you have properly registered your share schemes and ERS events.

Reminder: Short-Term Business visitors reporting

27 May 2021

Do you need to submit your annual Short-Term Business Visitors Arrangement report to HMRC for the 2020/21 tax year? The deadline for submitting this will now be 30 June 2021.

Salary sacrifice for pension contributions – are you using it?

30 April 2021

Are you using salary sacrifice for employer pension contributions? Read more how you can generate NIC savings for your organisation and your employees.

The employment tax and NIC implications of employer provided coronavirus tests and vaccines

23 March 2021

With coronavirus tests available, and a vaccine being rolled out, employers may want to test employees, and offer a vaccination when a vaccine is commercially available. Employers should consider the employment tax and NIC treatment.

P11D and benefit in kind reporting – it’s almost that time of year again

23 March 2021

As we approach the end of the tax year, employers may be starting to think about preparing P11Ds for employees. As benefit in kind rules are complex, it is crucial that employers are compliant and, where appropriate, make use of payrolling opportunities.

Social security and Brexit: new rules for globally mobile employees and actions for employers

09 February 2021

After many months of speculation, the UK and the EU finally agreed a post-Brexit trade agreement to apply from 1 January 2021 onwards. An important component of the post-Brexit UK/EU trade agreement is the rules around social security contributions for employees who spend time working across the EU.

Staff Christmas celebrations during coronavirus – don’t forget the employment tax implications

27 November 2020

Staff Christmas parties are set to be very different during 2020 as many employers consider holding virtual events or making gifts instead. The employment tax position must, however be considered.

Social security and Brexit: what’s likely to change and how should employers prepare?

16 November 2020

Despite the Brexit transition period ending on 31 December, there is still much uncertainty regarding if a ‘deal’ will be reached and what, if any, final agreed position will be post 1 January 2021.

Off payroll working in the private sector from 6 April 2021

28 October 2020

The changes to off payroll working rules (IR35) were postponed to 6 April 2021. Here are some key areas businesses should be looking at ahead of 6 April 2021.

What is a permanent establishment and how do you know if you have one?

28 October 2020

Employees returning to work in their home countries because of the coronavirus pandemic might present their employers with local tax risks. One risk is the creation of a permanent establishment.

Payrolling benefits in kind – what you should know

25 September 2020

Payrolling of benefits allows employers to tax employee benefits via the payroll, removing the requirement to report them on P11Ds. Find out how you can do this and whether it is right for your organisation.

Optional Remuneration Arrangements (‘OpRA’) and 6 April 2021

31 July 2020

Employers meeting employees’ travel expenses as they return to work as the lockdown is eased should be mindful of the tax and NIC treatment as additional charges might arise.

Global mobility at a crossroads: what is the future for business travel?

31 July 2020

Lockdown has given many mobile employees time to consider their ‘ordinary’ working patterns. There has been a demand for increased flexibility in working arrangements, creating new challenges for HR teams and tax professionals.

Coronavirus and employee travel expenses: tax and NIC considerations

26 June 2020

Employers meeting employees’ travel expenses as they return to work as the lockdown is eased should be mindful of the tax and NIC treatment as additional charges might arise.

Government announcement on payments for home office

19 May 2020

The Government has announced a welcome but temporary change to the rules on reimbursed homeworking expenses when employees are working from home because of the coronavirus.

Expenses and benefits when employees are working from home

17 April 2020

With many employees working from home due to the coronavirus, their employers might choose to pay their homeworking expenses, or provide homeworking benefits. Employers must still consider the tax and NIC treatment of these carefully.

Budget 2020 – employment taxes round-up

27 March 2020

The Budget was delivered on 11 March 2020 by the new Chancellor. There were several employment tax related announcements for employers to consider, understandably with COVID-19 top of the agenda.

PAYE settlement agreements: a useful tax compliance tool

31 January 2020

PAYE settlement agreements are widely used by employers to maintain compliance around employee expenses and benefits processes. Discover why PSAs are important and how to obtain one.

HMRC lose IR35 case at First Tier Tribunal

16 December 2019

The First Tier Tribunal has fired another shot across HMRC’s bows in the latest IR35 case, which underlines the importance of Mutuality of Obligation, ‘control’ and completing the HMRC CEST tool carefully and accurately, as it could be open to challenge.

Payrolling of benefits – avoiding the pitfalls

29 November 2019

Payrolling of benefits can alleviate admin burdens when applied correctly. Applied incorrectly, though, and it can lead to HMRC penalties and increases the risk of an employer compliance enquiry.

Termination payments: further change from April 2020

25 October 2019

When considering the tax treatment of a payment in relation to the termination of employment, for many the tax exempt figure of £30,000 immediately comes to mind. However, it is not that simple, as it cannot be assumed that it automatically applies. Furthermore, the NIC rules affecting termination payments are changing from 6 April 2020, which could result in additional complexities and costs for employers.

Unreported car fuel benefits – are you exposed?

27 September 2019

Many employers provide employees with fuel for their company cars but apply special employment tax rules which reduce any car fuel benefit arising to nil. This is an area where problems can arise, usually because of misunderstandings about the definition of business travel or because of an absence of records. Do you understand the rules?

Travel and subsistence: do you understand the rules?

30 August 2019

Tax relief and subsistence is an area where there are frequent tax compliance problems. Especially in organisations that have highly mobile workforces. Could this be a problem for your organisation?

New forces at work: accommodating international employments

28 June 2019

Have your employees asked about working internationally? What things to do you need to consider to accommodate this request? Here we explore some of the risks organisations need to consider.

Non-executive Directors and travel expenses – HMRC changing the rules

28 June 2019

Does your organisation pay Non-Executive Directors’ travel expenses? Are you aware the rules are changing? Read more to find out how you can prepare for the change.

Helping employees keep fit without falling foul of HMRC

31 May 2019

The tax exemption for employer provided sporting and recreational facilities encourages employers to help their employees be physically active. Employers providing such facilities should, however, take care to ensure their facilities qualify.

Are you planning your annual staff update?

08 March 2019

It is the time of year when many employers are planning and budgeting for their annual staff update. Are you applying the correct employment tax and National Insurance contributions (NIC) treatment for your next event?

Employment tax skeletons in the cupboard?

22 February 2019

Maintaining employment tax compliance is a notoriously difficult challenge for employers and, as a result, HMRC is intensifying its employer duties reviews. Have you considered an independent employment tax health check to help identify inaccuracies, mitigate risks and spot opportunities for cost savings and time efficiencies?

Budget 2018 - key employment tax announcements

30 November 2018

In the 2018 Budget, the Chancellor announced a series of important updates to employment tax rules. Employers should be aware of these changes to ensure that the correct treatment is applied going forwards.

HMRC’s new approach to ‘employer duty’ compliance

31 October 2018

HMRC has introduced new ways of working when undertaking reviews of employers’ records. Such reviews are now increasingly referred to as ‘employer duty compliance checks’. If you are selected for such a review, and are asked to complete an HMRC questionnaire, this must be handled carefully.

HMRC benchmark subsistence scale rates: receipt checking to be abolished

28 September 2018

Subsistence expenses - receipt checking requirement to be abolished for benchmarking scale rates. Find out how this might affect your organisation.

Non-executive directors’ fees – how to avoid mistakes

24 August 2018

Many companies engage the services of a NED as an independent adviser, without paying their fees through the payroll. However, for tax purposes, NEDs should generally be treated as employees. Find out how your organisation can avoid making mistakes.

Is your organisation prepared for a HMRC employer compliance review?

24 July 2018

HMRC has increased its focus on reviewing employers' records to check the correct reporting of expenses, benefits and payroll deductions. Is your organisation prepared?

Applying the trivial benefit in kind exemption

24 July 2018

At this time of year many employers will be considering the tax and National Insurance contributions (NIC) treatment of the non-cash benefits they provide to employees. As part of this thought process, employers may also be considering whether those non-cash benefits qualify for the statutory trivial benefit in kind exemption, which took effect from 6 April 2016 and has now been with us for two complete tax years.

Update on termination payments - HMRC finally publishes guidance

18 May 2018

In March we reported changes to the tax and NIC treatment of termination payments, highlighting that HMRC had still not issued updating guidance. On 6 April 2018, the day which a number of the rule changes became effective, HMRC finally updated its guidance to take account of the new rules.

Non-resident directors of UK companies and the tax implications

19 January 2018

It’s quite common for overseas directors of UK companies to visit the UK for short term business trips. However, the tax and NIC requirements that are triggered under PAYE by these visits are often overlooked.

Take extra care with employee living accommodation

12 December 2017

We are seeing increased numbers of employees being caught out by missing or incorrectly reporting employee living accommodation benefits. Here we look at what employers should consider, to ensure correct employment tax and NIC treatment is applied.

National Minimum Wage: are you being compliant?

10 October 2017

Here we explore how employers might be in breach of National Minimum Wage compliance and what you should do if you have made a mistake.

Spotlight on tax relief and employee pension contributions

08 September 2017

As there is growing confusion about method of giving tax relief via payroll on employee pension contributions, here we show how to mitigate unexpected liabilities.

Making gains: salary sacrifice - a continuing benefit

27 July 2017

New legislation introduced in April 2017 impacts ‘optional remuneration arrangements’ including certain salary sacrifice, flexible benefit and cash alternative structures.

Are you compliant with your short term business visitors from overseas?

18 May 2017

It is common for overseas employees of international businesses with UK operations to visit the UK for short term business trips.