Staff Suggestion Awards

A lot of our clients ask if they can give tax free bonus’s to their clients, and of course generally the answer is no.
However, there is this scheme ‘Staff suggestion Award’. Please see an extract from HMRC below: If you have any questions, please call Steve Cooper on 01424 422038.
EIM06610 – Employment income: exemption for suggestion scheme awards: conditions for exemption
Section 321 ITEPA 2003
The conditions that must be satisfied for a suggestion scheme award to qualify for exemption under Section 321 ITEPA 2003 are as follows:
• the employer’s scheme must be open on the same terms to
• all the employees of the employer, or
• a particular description of them. For example, a scheme which is open to all the employees in a particular building, or in a particular geographical area, will satisfy this condition.
• the suggestion must relate to the activities carried on by the employer
• the suggestion was made by an employee who could not reasonably have been expected to make it in the course of the duties of their employment, having regard to the employee’s experience
• the suggestion was not made at a meeting held for the purpose of proposing suggestions
• the award is an encouragement award (see EIM06620) or a financial benefit award (seeEIM06630).
If all the above conditions are satisfied, the award will be exempt from tax if, or to the extent that, it does not exceed the permitted maximum for the award. If an award that satisfies the conditions exceeds the permitted maximum, only the excess will be taxed.

The amount of the permitted maximum depends on whether the award is
• an encouragement award (see EIM06620), or
• a financial benefit award (see EIM06630).

Posted in Tax

Auto-Enrolment

WHAT IS AUTO-ENROLMENT?

As you will be aware, all employers will have to provide workers with a workplace pension scheme by law over the next few years. This is called ‘automatic enrolment’.

WHEN DO I HAVE TO TAKE ACTION?

This depends on how many people you employ and is called your staging date. You can check your staging date by visiting the Pensions Regulator website. (http://www.thepensionsregulator.gov.uk/automatic-enrolment.aspx?campaign=063ecrDWPemployers2013)

I ALREADY HAVE A COMPANY PENSION SCHEME IN PLACE – DO I HAVE TO ACT?

If you already have a company pension scheme, we can review this for free to see if it meets the requirements.

WHO WILL BE AUTO-ENROLLED?

All workers who:
• are aged between 22 and the State Pension age
• earn at least £9,440 a year
• work in the UK

WHY WOULD I ENROL EARLY?

Besides avoiding the last minute rush and motivating employees, several of our clients enrolled ahead of schedule once they realised that the costs were lower than expected. For example, one client with 25 employees was surprised to learn that enrolling would only cost an additional £250 per month.

HOW CAN MCPHERSONS FINANCIAL SOLUTIONS HELP ME?

We are able to conduct the initial workforce assessments as required by the pensions regulator and then guide you through the entire process. The advantage to you is that we have been through the process many times before and can save you the costs of re-inventing the wheel!

Contact us now on info@mcphersonsfs.co.uk for more information or call 0844 804 0025.

www.mcphersonsfs.co.uk
McPhersons Financial Solutions LLP. Woodside, Junction Road, Staplecross, East Sussex, TN32 5SG Tel: 0844 804 0025 Fax: 0844 804 0390. McPhersons Financial Solutions LLP is the independent financial advice arm of McPhersons Chartered Accountants.
McPhersons Financial Solutions LLP is an appointed representative of The On-Line Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Registered Office: 23 St Leonards Road, Bexhill-on-Sea, East Sussex, TN40 1HH. Registration Number OC353077 (England and Wales) This article is for UK Residents only

It’s finally landed – the Brand New App from mcphersons!

As a firm we are constantly looking for ways we can improve the service we offer our customers. And we are proud to announce the launch of our brand new mcphersons App. It’s completely free of charge to download and it’s available for iPhone, iPads and Android phones and devices.

So the next time you need to look up a tax rate or work out a VAT calculation, our new App can help. It provides you with up to date, important accountancy data at your fingertips.

It’s available for iPhone, iPad and Android devices and it’s available free of charge today.

Enjoy