Tax on payments expenses and benefits

Remunerating employees is often more than just a case of paying their salary and participation in an employer pension scheme. A remuneration package may include bonuses or benefits such as a company car or private medical insurance through to the less obvious perks like staff parties and social events.

Tax legislation is evolving to keep pace with modern working practices and tackle perceived avoidance so it’s important that employers understand the tax treatment of all elements of their remuneration policies ensuring payments and benefits are treated correctly.

Equally, employers need to ensure that expenses incurred by staff when undertaking their duties of employment are reimbursed in a manner which satisfies all of the conditions required to be paid gross.

Getting it wrong can be costly and mistakes can often lead to an HMRC Compliance Review.

We advise all employers on the taxation of all payments, benefits and expenses, ensuring that these are structured to be as tax efficient as possible whilst at the same time being valued by the employees to whom they are provided – thus helping with staff recruitment, retention and motivation.

In addition to advising on employee benefits and expenses, we can help you with the management of employment tax compliance matters, such as:

• Liaising with the PEM payroll team or your own payroll provider to ensure payments are captured and reported correctly;
• Preparation and submission of forms P11D and P11D(b);
• Agreeing PAYE Settlement Agreements with HMRC; and
• Preparation and submission of employee share scheme returns.