Significant changes to UK salary sacrifice schemes have now been implemented. Affecting both employers and employees, these changes essentially remove the tax incentives of many of the benefits in kind (BiK) offered under salary sacrifice arrangements.
With, the new salary sacrifice rules reducing the tax benefits of salary sacrifice schemes, here’s what small businesses need to know about the changes and how they affect employers and employees. (more…)
Changes are coming to the way benefits in kind are taxed – employers and employees should prepare themselves for the future.
Millions of British employees receive ‘perks’ from their employers: ‘benefits in kind’ (BiK) which include anything from childcare vouchers and mobile phones, to medical insurance and company cars.
Whether administered in addition to an employee’s cash remuneration, or as part of a salary sacrifice arrangement, these benefits may or may not be taxed, and may exempt employers from their National Insurance Contribution obligations.
By saving on income tax and NIC for employees (and NIC for employers), salary sacrifice schemes have, until now, represented a ‘win-win’ arrangement for British businesses. However, things are about to change. (more…)
An effective incentive scheme is an important way for small businesses to motivate their staff in order to improve performance and boost profits. Responding to incentives is part of human nature and employees like (and deserve) to be rewarded for their hard work.
For startups and small businesses who have a limited budget, designing a staff incentive scheme can seem like a real challenge. But you don’t need company cars and large annual bonuses to design an incentive scheme that has a positive impact in your workplace. Here’s how to create an incentive scheme that really works for your staff and your small business;
Taking on your first employee should be an exciting time. It means your business idea is working and you need help to expand. But while employees will help your business grow, they will also bring new stresses you may not have encountered before.
When you are employing new staff, there are all sorts of costs that you must take into account. Plus the way your business runs with just you and any business partner, may not continue to be appropriate when employees are on board.
This guide will help you identify the true costs of an employee, and build a plan to manage the impact on your business. (more…)
A recent survey by the Institute of Leadership and Management (iLM) suggested more than a third of UK workers (37%) were hoping to leave their current job inside 12 months, and that a quarter of people planning to change jobs were doing so because they felt underappreciated by their current employer.
Other studies have shown that many UK employees feel undervalued at work and often it’s the small things that count. Last year recruitment website monster.co.uk found 58% of British workers don’t believe employees are thanked enough in the workplace, with 54% saying this left them feeling unappreciated and 41% feeling demotivated as a result.
So what can small business owners do to help ensure staff are motivated to do a good job and want to stay with you for the long-term? (more…)
In an increasingly competitive business world, nurturing your existing staff can help you avoid a high turnover rate. If you’re constantly losing employees you find yourself spending a lot of valuable time training new staff, but not reaping the rewards down the line.
In any small or start-up business, one of the most important aspects is to find the right staff for the company. Employees need to be a good fit for any business, and in a start-up environment staff need to have the drive, innovation and determination to ensure that they make any venture a success.
While training may be a big upfront cost, it is vital to retaining new employees and ensure that the investment you make in recruitment and training are not drained from the business as employees leave the company.
So what staff benefits can you introduce to help you draw high-calibre employees to your start-up or small business? (more…)
As a small business owner you may not have lots of money sloshing around. You know your staff are your most important asset, but you may not be able to afford to give them a pay rise.
So how can you be an attractive company to work for, motivate and reward staff and promote loyalty without increasing your pay bill?
Believe it or not, introducing employee benefits may be the answer. There is a range of benefits which won’t be a cost to your company and will actually provide savings by reducing your tax liability. These are known as salary sacrifice arrangements.