Opinion – Page 15
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Opinion
Jenna Poon: Legal pitfalls of changing a benefits strategy
Employers need to ensure that the benefits being replaced do not form part of an employee’s terms and conditions, that they are not cemented in contracts of employment. If this is the case, an employee’s consent will be required in order to change those benefits.When examining employment contracts, any collective ...
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Opinion
Steve Wade: Five steps to prepare for RTI reporting
There are five practical steps for employers to follow to be ready.First, they need to know their start date. The 6 April is a Saturday, so an employer’s first RTI submission may be its second payroll run. Read more here.Second, employers must know their new starter process. After their start ...
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Opinion
Barbara Allen: Disclosure will aid pay transparency
The Enterprise and Regulatory Reform Bill, now passing through Parliament, includes a requirement for quoted UK companies to produce a new forward-looking remuneration policy report and a backward-looking implementation report.The forward-looking report will set out the key elements of an employer’s policy on remuneration, including performance measures used, and the ...
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Opinion
Susan Ball: In pursuit of trivial benefits
When can a benefit be exempt from tax? When HM Revenue and Customs (HMRC) decides it’s trivial enough not to pursue, is the answer. But be warned. The term ‘trivial’ can be subjective because there is no statutory limit below which benefits are not taxable. You need to consider if ...
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Opinion
Susan Ball: iPads can be tax-free if you follow rules
Tax breaks under HCI ended in 2006, but several replacement schemes mean staff can benefit from discounts, thanks to their employer’s buying power, allowing them to pay for a computer over a fixed term, with costs deducted monthly from net salary.But as an employer-supplied product, it is still taxed as ...
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Opinion
Andrew Clark: Staff ownership boosts engagement
One size does not fit all and the debate on how organisations are structured in order to broaden the UK’s economic base and ensure better staff engagement means many alternative forms of corporate ownership are rightly now being explored.How a business engages with its staff has never been more crucial ...
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Opinion
Susan Ball: Tax-free Christmas perks
Christmas is an expensive time of year, but staff parties can be tax free, because HM Revenue and Customs’ (HMRC) festive gift is an annual tax exemption of up to £150 per person. While most employers include food, drink and entertainment when costing such events, many forget they should also ...
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Opinion
Ben Saunders: Employee ownership scheme has doubtful value
Then the Department for Business, Innovation and Skills rushed out its consultation on implementing employee owner status, with three weeks to respond.A new class of employment status, ‘employee owner’, will be introduced. Such people can receive shares worth between £2,000 and £50,000, which will be exempt from capital gains tax. ...
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Opinion
Alastair Kendrick: What will HMRC do after court ruling on NI?
The case surrounded the national insurance (NI) relief the taxpayer tried to utilise against the cash allowance paid to staff in lieu of a company car.The Court of Appeal decision was on a point of law and cannot be taken as a ‘green light’ for others to try to make ...
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Opinion
Elizabeth Parkin: Maternity leave issues
Many employers struggle to fully understand their obligations to pregnant women. Misunderstanding legal duties may lead to employment tribunal claims which can be expensive to settle, not to mention the unwelcome possibility of negative publicity.Part of the problem for employers is the extensive legislation which includes rights to:paid time off ...
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Opinion
Robert O’Hare: Tax issues around auto-enrolment
It does not appear that auto-enrolment will have any direct tax impact, but there could be an indirect tax impact on employees.For example, the threshold for the maximum amount of annual pension contributions that qualify for tax relief was recently cut to £50,000. If an employee’s annual pension savings already ...
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Opinion
Gagandeep Prasad: Update on employment reform
On the legislative front, the coalition government is continuing its programme of employment reform. This includes new provisions on executive remuneration aimed at curbing boardroom excess by giving greater powers to shareholders contained in the Enterprise and Regulatory Reform Bill, now going through parliament.The government has also confirmed it will ...
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Opinion
Alex Fricke: Legal issues around staff health and wellbeing
Ensure employment contracts and/or applicable policies clearly set out the organisation’s approach to sickness absence. For example, how many days will be paid under a contractual sick pay scheme and is the employer entitled to seek a medical report?Review provisions regarding any private health insurance cover. Ensure that there is ...
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Opinion
Lesley Fidler: Tax best practice
Unless tax specialists are working at the giddy heights where tax planning merges into tax avoidance/political outrage, the substance of a transaction is usually of little concern. Down at ground level in the well-trodden realms where payroll and flexible benefits schemes collide, it is the form the transaction takes that ...