All posts tagged employee benefits

Christmas Party – a more in-depth look

Tyler Lappage
ACCA

Questions are pouring in on this topic:

What happens if I charge for non staff guests to attend the party? Can I offset that against the party cost and claim the rest? If I do that what about VAT?

If the company charged a fee for attending the party, which off-set the cost of non-employee entertainment, a good case could be made for the remaining cost to be allowed for tax purposes. Similarly, for VAT purposes, input VAT cannot be reclaimed on business entertainment, but is allowable for staff entertainment. If the costs can be readily apportioned, the element of VAT connected to staff can be reclaimed.

If I charge guests, how do I work out how much? Do I need to only charge for their meal and refreshment or must I charge for their share of the Buckingham House venue and Adele entertainment?

To be clear, charging non-employees a fee to attend is not necessary to get some tax relief. If the event is for employees and the costs of the event can be individually identified, as long as the costs were split correctly, you could have costs for both staff entertaining (allowable) and business entertaining (not allowable) on the same night.

The key point is the nature of the event; i) to reward staff + invite a few non-employees is okay, ii) to entertain clients + invite the staff along to serve drinks and take coats is not okay.

The cost of each meal is easily identifiable and could be analysed readily. The cost of hiring a global superstar to entertain is less easy to split between client and staff entertainment, so prepare for an argument with HMRC on how much of this is allowable.

If I have a staff only party, can I claim as much as I like? For example, a Nabarro Poole Ltd. party in Melbourne this year, on Boxing Day at the 4^th Ashes Test!

I’ll leave this question to HMRC – ‘If the employer provides one annual function for employees no charge to tax arises if the cost of the event per head does not exceed £150/head.‘

So, if you’ve got a good travel agent and friends in Melbourne, you may be able to stay under this threshold. If not, the trip would be taxed as a benefit on the employee and would need close consideration on whether there would be tax savings gained for the company.

Nabarro Poole does not accept any liability for actions that readers may take and recommends obtaining specific professional advice before action.

For more information, please contact us through our website: www.NabarroPoole.com

Employee Benefits – Cycle to Work

At Nabarro Poole, we think that it is important for small businesses to get real value from their accountant. With this in mind, we try to do more than just prepare accounts and complete tax returns. Over the years, we have grown our network of businesses and contacts to ensure that we have access to fantastic services that we can pass on to our clients and associates.

In the second instalment of our guest blog, Samantha Latham from Enjoy Benefits, has explained the benefits (both monetary and physical) of the bike to work scheme.

Cycle to Work Scheme… What is it?

Cycling to work brings a number of very significant benefits, both in terms of personal health and well-being to the individual, but also to society as a whole, both in terms of health and economic benefits as well as parking costs and train fares. You don’t even need to be the one cycling to gain benefit from greater uptake!

The best thing about getting a bike is that the more normal and popular it becomes, the safer and more enjoyable it becomes. Choosing the Cycle to work scheme makes the whole thing more affordable too…..

The benefit works by the employer leasing the bike and any accessories to the employees over a fixed hire term. Enjoy Benefits Ltd make is simple, they provide everything an employer needs to run the benefit and take care of all the admin too, what could be better…..

The cycle to work benefit is run through salary sacrifice so the employee saves the tax and NI on the amount and the employer save in NI contribution. By offering this benefit, you would be making a real difference to your employees, their health and also the company’s bottom line.

Contact Enjoy Benefits today on 0800 088 7315 quoting reference 6775 for more information, if a scheme is not in place for the company then Enjoy Benefits will be happy to discuss how the benefit works and set an account up.

We would like to thank Sam and the team at Enjoy Benefits for this insight. Just to add that I cycle to work 95% of the time and I take part in Nabarro Poole’s bike to work scheme and the financial benefit is just a bonus. The health benefits for employees are invaluable.

Nabarro Poole does not accept any liability for actions that readers may take and recommends obtaining specific professional advice before action.

For more information, please contact us through our website: www.NabarroPoole.com

Employee Benefits – Child Care Vouchers

In the first instalment of our guest blog, Gina Campbell from Enjoy Benefits, has highlighted a fantastic opportunity for both employees AND employers to save some money through operating a Child Care Voucher scheme:

Childcare Vouchers – Simple, Affordable and Stress Free

For some parents finding and paying for suitable childcare during working hours and even the summer holidays can be a difficult task. Latest figures suggest that one in five parents with children under the age of 15 use some form of formal childcare including holiday clubs, play schemes and youth clubs during the six week break.

The cost of childcare can lead to certain pressures being placed on families and their budgets. Therefore, it may be more beneficial for parents to take unpaid leave from work to provide their own childcare. Childcare Vouchers are a simple way for working parents to reduce these necessary costs.

Childcare Vouchers are available from employers for working parents to save money on their childcare cost. Parents can claim up to £243 a month. The amount is deducted from their wages each payroll period and in return they receive the Childcare Voucher Benefit which can be used to pay for any registered childcare for children up to the age of 15. The parent saves the tax and NI on the amount giving them a saving of up to £933 per year.

Both parents can join their employer’s Childcare Voucher scheme which could double the saving to more than £1,800 per year.

Some parents only need childcare cover for the holidays, it is worth joining your employer’s Childcare Voucher scheme now, because you can store the amount up throughout the year to make holiday childcare more affordable.

Employers, in this current climate why not help your employees as much as you can. By offering the childcare voucher benefit you are helping to take some of the stress and worry away from your employees whilst also saving them money.

This benefit can also make a real difference to your bottom line. The average saving for companies is £271 per employee per annum… Helping to save money for you and your employees.

Nabarro Poole does not accept any liability for actions that readers may take and recommends obtaining specific professional advice before action.

For more information, please contact us through our website: www.NabarroPoole.com

Nabarro Poole

All posts tagged employee benefits

Christmas Party – a more in-depth look

Employee Benefits – Cycle to Work

Employee Benefits – Child Care Vouchers

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Christmas Party – a more in-depth look

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Employee Benefits – Child Care Vouchers

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The Free Accountant’s Clinic

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