Businesses often face the dilemma of wanting to recognise employees efforts and performance, but during difficult financial times they may have limited resources to do so.
Employee Rewards and Incentives
The following enhanced benefits are available:
- A Tax/ NIC planning exercise can increase team rewards financially without increasing costs to the business. Many companies cannot afford pay rises and some may be implementing pay cuts, but with effective planning this idea can be used to motivate and reward key staff and employees at all levels.
- A improved business motoring arrangement which reduces costs by 25 to 60%.
- An equity stake agreement for companies who wish to make provision for members of staff, the following are possible:
- Share option schemes
- Share purchase schemes
- Share Incentive Plan schemes (HMRC approved)
Lower Tax/NIC costs for Business Owners
Most of these can be on the basis of participation in existing equity in the company or future growth in the company once their equity stake has been recognised.
- Restoration of tax effective dividends in all cases solves:
- Minority shareholder issues
- Trading below share capital level
- Institutional investors
- Current profits above £300,000 per annum (or less with multiple co owned companies)
- No distributed reserves
- Taking advantage of the House of Lords Arctic case for income sharing (see Jones v Garnet 2007)
- Maximum basic rate tax free of NIC
1hr consultation to discuss Team Motivation and innovative tax saving ideas
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