If you’re a business owner looking to reward one of your employees for long service there are a number of tax incentives and obligations you must consider.
Rewarding employees with cash gifts is taxable
By rewarding your clients with cash the gift will be subject to tax. The HMRC does however allow certain gifts to make in recognition of long service, subject to some conditions. These conditions include:
· Must be for 20 or more years of service
· Is not cash or vouchers that can be converted into cash
· Does not cost employer more than £50 for each year of service
· Where more than one long-service gift is made to the same employee the exemption can only apply if there has been at least 10 years between each gift.
If you would like to provide your employee with a gift of monetary value
One way to give your employee a gift of monetary value without actually doing so is letting them choose something they would usually buy- such as a season ticket to a football team.
Trivial Benefits Exemption
If you have chosen a gift for your employee but want to add further monetary value, you could consider using the trivial benefits exemption. The exemption is restricted to non-cash awards, and a maximum of £50. However, it can be applied more than once. Therefore you could, for instance, buy an employee vouchers redeemable at a restaurant each month.
Given that the employee has worked for you for over 20 years, it is likely that your employee is approaching or over 55. This means that you could consider making a pension contribution, of which 25% would be tax free when accessed. If they are over 55 the contribution can be accessed immediately. Therefore by making a contribution of £4000 to their pension £1000 will be tax-free.
Currently there are over 2,200 families on the waiting list for Kensington and Chelsea social housing. Which compared to the 11,000 houses currently available, presents a huge issue for councils finding the families accommodation. The council has already spent its entire reserves of £230m on new housing for the Grenfell tower survivors, whom all fall into their borough.
Stamp duty is an area of much dispute and change in UK tax. Currently, you usually pay Stamp Duty Land Tax (SDLT) on increasing portions of your property’s price above £125,000 (for residential properties, like a house of flat).
The amount of Stamp Duty you owe can vary depending on whether or not the property is your first home and the purchase is £500,000.
Statutory accounts (commonly known as annual accounts) are financial reports that must be prepared and filed at the end of each financial year. For UK private limited companies statutory accounts are a compulsory part of the tax year.
As a business owner it is important to be aware of your companies tax obligations and liabilities. There are a number of taxes that small businesses are required to pay. Below is our breakdown of the taxes you should know about as a business owner:
The October 15th US tax deadline is just around the corner. Below we have put together a brief outline of how to get started and avoid the harsh penalties of the IRS’s long arm:
Inspired off of the Jean Royère’s furniture designs we went to see yesterday (pictured above) in the spirit of London Design Week, we have put together a brief guide for our clients on some of the expenses you can claim as a furniture designer.
There are generally much expenses incurred while working as a furniture designer than other freelance professionals. For instance, the cost of raw materials and machinery. Raw materials and any equipment required to assemble the furniture are all claimable against tax, assuming that you are buying both.
If you are based in the UK and your employees are working abroad there are slightly rule surrounding PAYE and NIC depending on where your employees are working and how long you expect them to work there.
A confirmation statement is a form that was introduced to replace the annual return (AR01) in June 2016. The purpose of a annual confirmation statement is to verify important company data registered on Companies House to ensure it is correct and up to date.
As a business owner, you are responsible for ensuring your business is compliant and reaches relevant accounting deadlines. Your business accounting period for Corporation tax is covered by your Company Tax Return.
We have worked with thousands of self-employed Marketing Consultants on their tax returns over the years. Through our years of experience, we have developed an in-depth, expert knowledge of the claimable tax expenses and deductions available to Marketing Consultants.