Wages and Dividends for 2019-20

Here we outline the suggested combination of salary and dividends from your limited company to make best use of the tax rates and allowances. If you are looking at taking alternative combinations of salary and dividends, additional tax and NI will be due. Tax will be payable on all dividends in excess of £2k so […]

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Employer Supported Childcare

Employer supported childcare, commonly by way of childcare voucher, is for many employers and employees a tax and national insurance efficient perk. We consider the implications of this type of benefit on the employer and employee. This scheme is due to end on the 4th October 2018 so action needs to be taken now to […]

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Cars for Employees

The current regime for taxing employer provided cars (commonly referred to as company cars) is intended: to encourage manufacturers to produce cars which are more environmentally friendly and to give employee drivers and their employers a tax incentive to choose more fuel-efficient and environmentally friendly vehicles. We set out below the main areas of importance. […]

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Travel and Subsistence for Directors and Employees

Travelling and subsistence expenditure incurred by or on behalf of employees gives rise to many problems. We highlight below the main areas to consider in deciding whether tax relief is available on travel and subsistence. Employees with a Permanent Workplace Many employees have a place of work which they regularly attend and make occasional trips […]

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Share Ownership for Employees – EMI

Enterprise Management Incentives (EMI) Retaining and motivating staff are key issues for many employers. Research in the UK and USA has shown a clear link between employee share ownership and increases in productivity. The government has therefore introduced a variety of ways in which an employer can provide mechanisms for employees to obtain shares in […]

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Research and Development

Research and development (R&D) by UK companies is being actively encouraged by Government through a range of tax incentives. The government views investment in research and development (‘R&D’) as a key to economic success. It is therefore committed to encouraging more smaller and medium sized (‘SME’) companies to claim R&D tax relief The incentives are […]

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National Minimum Wage

The National Minimum Wage (NMW) and National Living Wage (NLW) are the legal minimum wage rates that must be paid to employees. Employers are liable to be penalised for not complying with the NMW and NLW rules. HMRC are the agency that ensures enforcement of the NMW and NLW. We highlight below the main principles […]

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Agency Workers Regulations

Regulations which took effect from 1 October 2011 mean that workers supplied to a company, or to any other entity, by an agency will become entitled to receive pay and basic working conditions equivalent to any directly employed employees after a 12 week qualifying period. […]

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Tax and the Company Car

One of the most frequently asked questions we receive is in relation to the use of cars for business purposes and how this will affect the tax liability. Here, we will look at the various options available for business owners when it comes to work transport. The current system of tax relief and benefits in […]

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That’s entertainment !

What is entertainment? Business entertainment includes hospitality which is provided free of charge to the recipient. In general, no form of business entertainment is allowable for tax purposes regardless of whether you personally think there is a purpose specifically related to your business UNLESS you are entertaining employees for the purpose of reward and motivation. […]

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