11 - May 2019
Is the summer party tax-free?
Posted by : Pro-Taxman
View : 159
Comment : 0
A statutory exemption exists, which allows employers to meet the cost of certain social events for staff without triggering a liability to tax or NICs, providing certain conditions are met. The legislation refers to ‘an annual party or similar annual function’. Although HMRC do not seem to interpret this to mean that the same event […]
11 - May 2019
PAYE settlement agreements
Posted by : Pro-Taxman
View : 201
Comment : 0
A PAYE Settlement Agreement (PSA) enables the employer to pay the tax and National Insurance instead of the employee on those benefits and expenses included within the PSA. This can be useful to preserve the beneficial nature of the benefit, for example in respect of a Christmas or other function falling outside the associated exemption, […]
11 - May 2019
Voluntary National Insurance contributions – should you pay?
Posted by : Pro-Taxman
View : 195
Comment : 0
The payment of National Insurance contributions provides the mechanism by which an individual builds up their entitlement to the state pension and certain contributory benefits. Different classes of contribution provide different benefit entitlements. Employed earners pay Class 1 contributions where their earnings exceed the lower earnings limit – set at £118 per week (£512 per […]
11 - May 2019
Reporting expenses and benefits for 2018/19
Posted by : Pro-Taxman
View : 148
Comment : 0
Where employees were provided with taxable benefits and expenses in 2018/19, these must be notified to HMRC. The reporting requirements depend on whether the benefits were payrolled or not. Benefits not payrolled Taxable benefits that were not payrolled in 2018/19 must be reported to HMRC on form P11D. There is no need to include benefits […]
11 - May 2019
Family companies – optimal salary for 2019/20
Posted by : Pro-Taxman
View : 168
Comment : 0
For personal and family companies it can be beneficial to extract some profits in the form of a salary. Where the individual does not have the 35 qualifying years necessary to qualify for the full single-tier state pension, paying a salary which is equal to or above the lower earnings limit for National Insurance purposes […]