HR4UK LAUNCHES TAX-EFFICIENT EMPLOYEE INCENTIVE SCHEME
HR and employment support service HR4UK has launched a new employee incentive scheme for SMEs which motivates staff, avoids paperwork for employers and cuts tax bills.
Research demonstrates that non-cash employee incentives are more effective at motivating employees than bonus payments.
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. The employer 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.
The cards are accepted at thousands of UK retail outlets including Argos, M & S, Iceland, River Island, ToysRus, Halfords, Matalan, Homebase, Boots, Debenhams and many more.
Tax Paid Gift cards can be used for employee long-service awards, as Christmas or birthday presents, as a ‘thank you’ for carrying out extra work or as rewards for achievement under structured bonus/incentive schemes.
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.
There are further savings to be made for existing HR4UK clients – full service Employee Handbook clients enjoy a discounted administration charge on ordering Tax Paid Gift cards.
For more information on Tax Paid Gift cards from HR4UK visit www.tiny.cc/HR4UK.