A ‘CHRISTMAS CARD’ THAT WILL MOTIVATE STAFF

HR and employment support service HR4UK is offering employers which have not yet arranged a Christmas gift for staff a swift and easy seasonal ‘card’ which can both reward and motivate employees.

Tax Paid Gift cards from HR4UK allow employees to choose the gift they want from one of thousands of retail outlets or pay for all or part of a holiday – all fully covered by tax regulations and with no forms to complete for HM Revenue and Customs (HMRC).

HR4UK provides a Tax Paid Gift card that employers can present to their employees as a seasonal bonus or gift. The company pays five per cent less than the value added to the cards, giving an immediate saving against a cash incentive.

Overall, however, because of tax and National Insurance savings, the card can save the employer around 20 per cent compared with the cost of giving the same employees a cash bonus in their wages.

Research demonstrates that non-cash employee incentives such as the Tax Paid Gift Card are more effective at motivating employees than bonus payments.

The cards are accepted at leading UK retail outlets including Argos, M & S, Iceland, River Island, ToysRus, Halfords, Matalan, Homebase, Boots, Debenhams and many more.

Because the incentive value is basic rate tax-paid, neither the employer nor employees need to declare the payment to HMRC – unlike many other award schemes which generate complex tax paperwork for employers. There are no forms to complete and no need to amend employees’ PAYE coding or tax payments because HR4UK handles all the paperwork.

Adding £100 after tax to a pay packet usually costs in excess of £167 gross of basic rate tax and National Insurance but the cost of providing £100 purchase power on the Tax Paid Gift card can be as little as £135.14.

For more information on Tax Paid Gift cards from HR4UK visit www.tiny.cc/HR4UK.