JS. Tax Advisory
JS Tax Advisory can advise on all the tax aspects of employee rewards, here are just some of the potential options:
1. Share Incentives
Offering employees shares can really help onboard and motivate them. This can also help with business cash flow as an alternative to increasing cash rewards.
The default position is such that employees will pay income tax (and possibly NIC) on the value of any shares they receive.
However, did you know that there are several tax-advantaged employee share schemes? Most of these schemes, if implemented correctly, can be introduced with no upfront tax cost for the business or your employee. They also often come with future tax benefits for the business and employee when compared to, say, bonus payments.
The tax-advantaged schemes come with specific criteria, and it is not always possible for an award to qualify. But does that mean you have to accept an income tax charge? The answer is no. As well as a breadth of knowledge in relation to tax-advantaged schemes, our expert team is well versed with other tax-efficient share incentive options. One option may be to structure the share award to reduce the upfront value of the shares (such as growth shares) therefore minimising upfront tax costs. Or it may be possible to ensure the value of the shares is paid by the employees but at a future point (such as partly paid shares), therefore avoiding a tax charge now.
We are here to find the right option with the optimum tax position.
2. Salary and Bonus Packages
The question most employees have is ‘what cash will land in my bank account?’
We can help you devise, illustrate and implement employee salary and bonus packages that suit everyone.
3. Benefits packages
Are you considering giving non-cash benefits to employees? Perhaps a company car or a new watch?
Did you know that those awards will result in tax and NIC charges for both the business and employee?
Our tax team is able to advise on the tax position of providing non-cash benefits and consider options to improve this, as well as provide illustrations so both the business and employee have full clarity in relation to the net benefit.
4. Employee Pensions
Did you know that if employee pension payments are made via salary sacrifice arrangements, this results in NIC savings for both the business and employee? This could mean there is more to contribute, therefore improving the overall package for the employee.
We can help you devise, illustrate and implement employee salary sacrifice pension arrangements. Taking you one step further to obtaining and retaining the best talent.