This year we left organising our Christmas party late, and after we finally booked the venue, I started to think about Christmas gifts, parties for staff and benefits in kind. You won’t be surprised to know that my accounting brain is more interested in the tax implications of Christmas, rather than tinsel and decorations.
We have an article on our website covering the various options about rewarding your staff, especially at Christmas. As you would expect from HMRC the rules are not straightforward, and the consequences of not adhering to them can mean employees will be taxed on the whole amount of the benefit. Take a look at the article if it is relevant and if you need further advice please get in touch.
Whilst writing, I’d like to remind you that the national minimum wage (NMW) has risen by 20p to £6.70 per hour for adults in October. This will rise further to £7.20 per hour from April 2016 when the new mandatory National Living Wage (NLW) comes into force. Whatever the politics behind the NLW, it is clear there will be a cost impact on most businesses even if you pay staff above the NLW rates, as there is likely to be pressure to maintain a differential in salary rates. The Government say that this increase can be offset by efficiencies, which are likely to come from investment in technology.
Over the last three years we have invested significant amounts in software and systems, and we do see the benefits. If you would like advice on how you could increase efficiencies in your business get in touch and we will help you.
If you need advice on any accountancy and tax matters please get in touch.