We are a small network of Independent Financial Advisers directly regulated by the Financial Services Authority, and mainly linked to firms of Chartered Accountants in The CharterGroup Alliance.
Employee Benefits
Your employees could be one of the most valuable assets your business has. What can you do to ensure they remain loyal and productive? Obviously paying them enough is paramount, but did you know there are many benefits you can provide your employees that may not necessarily cost you anything, but could save them substantial amounts in tax?
Examples:
· Childcare vouchers – you can give your staff childcare vouchers either as part of their salary, or even use “salary sacrifice/ exchange” (see below). There is no tax or national insurance payable by them or you. The limits are different for higher or basic rate tax-payers, but they could save over £1,000 in tax compared to paying out of taxed income.
· Bike to work – if your employees are keen cyclists, why not buy them a bike? You can claim tax allowances against the purchase, they “borrow” it from you, and have no tax to pay on it, again you can use salary sacrifice to cover costs.
· Pensions – probably the most common add on benefit that many employers provide, but did you know they will start phasing in “auto-enrolment” from 2012? The government is introducing NEST, National Employee Saving Trust, and making it so employees have to “opt-out” rather than opt-in to the scheme. If they don’t opt-out, you will also have to contribute up to 3% of their salary to the scheme. You cannot encourage staff to opt out either.
· Salary sacrifice – if your employees are paying into a pension scheme for themselves, taking a pay cut, and then you paying into their scheme in their place could potentially get them over 30% extra for exactly the same cost.
· Private Medical cover – for example BUPA. Although your employees will be taxed on the cost as a benefit in kind, they could still save substantial amounts compared to buying the cover directly themselves, as the group premiums are much cheaper than individual.
· Company Car – very valuable benefit many employers provide their key staff, but is it the most tax efficient way for them to own it? Providing a car allowance may actually work out cheaper for them.
· Death in service – Many employers provide life cover for their staff as a valuable benefit. Again group discounts reduce the costs considerably, but even if you have a small number on staff (or even just you), we can provide individual death in service benefits and pay no tax on the premium or death benefit.
· Income protection/ critical illness – again substantial discounts available for group schemes.
· Mobile phone- you can provide an employee with a mobile phone for work or private use with no tax liability on the cost.
How we can help:
· Advice on how to set up the schemes mentioned above
· Implementation of pensions, death in service, Private Medical Insurance, etc
· Provide calculations for tax saving e.g. salary sacrifice for pensions, etc
· Presentations to staff explaining the benefits and costs of various schemes
· Bespoke individual financial planning for directors
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Last modified: Aug 9 2011 7:50PM