Employee Share Schemes and Benefits
Employee shares schemes play an important role in incentivising and retaining valuable employees. Shares can be issued under a formal share scheme, which may be HMRC approved and benefit from tax advantages, or via a more formal arrangement.
We can advise on the type of scheme that would be most appropriate for each employer and the tax and reporting considerations including:
- Corporation Tax deductions for associated costs
- Annual employer reporting to HMRC
- Potential Income tax and National Insurance charges.
We can also advise employees on the tax implications of acquiring and selling employee shares and their Self-Assessment tax return reporting obligations.
We can advise on the tax and National Insurance implications of employee benefit packages. Examples of commonly offered benefits include:
- Company cars and fuel
- Company vans and fuel
- Private medical or dental insurance
- Employee Loans
The rules concerning the valuation of taxable benefits have become more complicated following the introduction of the Optional Remuneration Arrangement rules on 6 April 2017.
Business owners are often bound to increase employee salaries on a yearly basis. But one alternative is to offer an additional benefit rather than cash. We can advise on the opportunity to provide tax-free benefits including:
- Trivial non-cash benefits
- Annual staff parties
- Mobile phones
- Pension contributions and pension advice
- Health screening
- Additional home working costs
- Relocation expenses
We also offer P11D preparation services to report benefits in kind and Class 1A National
Insurance liabilities to HMRC.