Autumn Budget 2021: Annual Investments Allowance (AIA) – change in rate delayed again
We know every business has a different model, but we spend time understanding where and how the people fit in. Once we know who is critical to business success, we can explore with you options as to how they will be motivated to perform at their best.
Your people are your most important asset. It is key to find the right way to incentivise your staff – cash or equity; shares or options; Christmas bonus or Christmas party.
You have so many choices in how to reward everyone – and they all have tax consequences, just two examples would be:
There is a huge difference (potentially around 50.8% in tax) between approved and unapproved share schemes. We can help you find the most appropriate share scheme, often, but not always, an Enterprise Management Incentive Scheme because of the tax breaks. We can help you to decide on when incentives should accrue – now or on an exit; and on quantum, a percentage of the whole or just of the future growth to reflect individual contribution.
Benefits in kind
Getting things wrong on benefits can create a tax bill for your business or your staff, which is never welcome. As an example, take a Christmas party – if the cost per head is £149 there is no tax charge but at £151 per head either your business or the employees have to pay tax on the whole amount. An expensive £2!
Once you have decided what you want to do, we can explain the tax implications and discuss any changes to make things more tax efficient. We also provide Outsourcing and Payroll Services should you require our assistance in these areas.
We inspire confidence. We are recognised as a top 20 firm for tax in the UK and, with a significant proportion of our partners specialising in tax, you will benefit from exceptionally high levels of technical expertise and experience. We will advise you accordingly, enabling you to plan with realistic ambition.
4 Offices, London, St Albans, Rickmansworth and Milton Keynes
Joined-up advice across all services, including, Corporate Restructuring, Corporate Finance and Corporate and Business Tax
Advise a wide range of industries and sectors Sector-specific experience and insight
Knowledge on variety on services, such as, Remuneration, Research & development, Capital Expenditure and Patent Box Relief, EIS and SEIS and buying and selling a company