Tax &Your Employees
There are many different aspects of tax that apply to different areas of business. Tax laws are by no means static. As such there should be regular reviews of your business to explore how tax regulations will affect your business.
Areas to be mindful of include:
Reclaiming statutory payments
Employers are responsible for paying employees when they become parents or are off work with sick pay. As an employer you may have to pay employees Statutory Maternity Pay, Paternity Pay or Adoption Pay, depending on how long they have worked for you.
A small business with an annual NIC bill of less than £45,000 can reclaim 100% of the statutory pay.
Overnight stays
You can pay employees £5 tax free each time they need to stay away from home overnight.
This tax free amount can be in addition to the cost of accommodation and meals that can be reimbursed if receipts are produced. If the overnight stay is abroad, the tax-free amount is £10 a night.
Mobile telephone
You can supply your employees with one tax-free mobile phone each.
Mobile phones provided to employees are tax free, as long as it is the employer rather than the employee who owns the phone and takes out the contract with the telecoms company.
Making the most of your reliefs and allowances will ensure that your business saves on its tax bills whenever possible.
