© 2018 by Hansuke Consulting Limited

 

Hansuke Consulting Limited is registered in England and Wales number 10136213 with its registered office at: 71-75 Shelton Street, London WC2H 9JQ. Hansuke Consulting Limited is an accredited and regulated member firm of the Institute of Chartered Accountants in England and Wales (ICAEW).

 

In accordance with the disclosure requirements of the Provision of Services Regulations 2009, our professional indemnity insurer is International General Insurance Co (UK) Limited, of 133 Houndsditch London EC3A 7AH. The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of America or Canada.

Contact our team
+44 (0) 207 816 5488
Download our Employment Taxes Brochure here 
Employment Taxes

The process of taxing and reporting of employees earnings and benefits to HMRC should be straight-forward.  However, after a number of years without major change, there have been massive legislative alterations and reversals recently, including the introduction of the Apprenticeship Levy from April 2017, the limits on salary sacrifice arrangements (starting April 2017) and the restrictions on termination payments from April 2018.  With the Office of Tax Simplification continuing their focus on employment status and reporting of expenses in 2017, we should expect many more changes on the horizon.

 

It is essential that employers consistently review their employment tax compliance in light of these changes and as part of their overall tax planning strategy.  The Financial Services industry is under government scrutiny to maximise transparency, from HMRC’s Know Your Customer meetings, to adherence to the Senior Accounting Officer regulations. 

How we can help

Our overall aim is to help our clients manage their tax compliance requirements and reduce unnecessary tax risks.  We draw on our good relationship with HMRC, have the knowledge and experience to work with your finance, payroll and HR teams to, for example, ensure processes are fully documented for SAO purposes, support teams through a HMRC review, or provide training to staff on any area of employment tax.  

General information

Hansuke provides a broad range of employment tax services, covering:

  • Review, advise, improve and document processes and procedures under SAO regulations

  • Support business with Know Your Client or other HMRC compliance review

  • Negotiation of settlements with HMRC

  • Undertaking employment tax audits

  • Determining employment status and IR35 issues

  • Tax position for expenses and benefits, including P11Ds and PAYE Settlement Agreement’s

  • UK compliance for internationally mobile employees and directors, both short and long term

  • Non-executive directors and non-UK based directors

  • Tax efficiency of salary sacrifice/exchange and flexible benefit schemes

  • Training to staff

  • General compliance queries on:

    • Day to day payroll queries

    • Apprenticeship levy

    • Termination payments

    • Share and share options

    • Entertaining

SAO and Employment Tax reviews

  • Review processes and procedures to ensure adherence to the SAO regulations in relation to income tax, specifically PAYE

  • Advising on best practice using wealth of experience

  • However, recommend full review, which would incorporate NIC and benefits reporting/compliance

  • Aspect reviews of particular area of concern, such as employment status or expenses & benefits reporting

  • Report, practical recommendations and continued follow up and guidance to help put right

Employment status and IR35

  • Increasingly under scrutiny, complex, not a black or white issue, may layers of grey!

  • New rules and regulations imminent

  • Failure to correctly apply rules could lead to hefty tax and penalties levied

  • How we help – review current arrangements and procedures to ensure no gaps, fully reviewing position and taking supportable view of employment status.  Provide documents for processing.  Practical guidance and advice based on your business structures.

  • Training – for companies who have on-going consultants in place

Expenses and benefits reporting – P11Ds and PSA

  • Lengthy and high risk area

  • Annual process can be reviewed to ensure you are capturing the correct expenses and benefits to report on P11D or PSA

  • Assist in the reporting of costs on P11D to HMRC

  • Advise on correct amounts to report

  • Gain and report the PSA on an annual basis

  • Reporting, training, advice and compliance

Salary sacrifice & alternatives

  • Rules are changing from April 2017, though are some transitional rules to assist

  • Advise on your current benefits package, providing the tax/NIC position for each element if provided through a salary sacrifice/exchange arrangement

  • HMRC approval sought for new arrangements

  • Other employee rewards?

Termination payments

  • New rules coming in from April 2018 following tax simplification

  • However, still complex particularly when determining whether a payment is taxed as earnings or as a genuine termination payment

  • Review policies and provide tax position for scenario, flowchart etc

  • Training

Internationally mobile employees and directors

  • Advice on UK compliance when employees/directors are travelling to or from UK for business purposes, including short term business visitors to the UK, short assignments or long term assignments to/from UK

  • Advice on overseas directors on the board of a UK company – typically the most prevalent mistake companies make, often costly where tax and NIC are in point, but easy to rectify

HMRC negotiations

  • HMRC reviews are usually straight-forward and easily wound up

  • However, not always the case – protracted negotiations, lead to time wasted

  • How we help – have wealth of experience in bringing negotiations to a close in win:win situation and minimising impact to your business – either with time or tax & penalties

  • Whether following HMRC full/partial review, or own review