Employment Taxes

The Tax Team comprises of specialist lawyers that provide employment tax advice to both employers, and employees, from a range of businesses. We advise businesses on the tax consequences arising from employing individuals from start up through to cessation and everything in between.

The Team provides tax advice on everyday operational challenges while also advising on strategic issues, helping employers understand the tax consequences and avoiding potential traps.

Our legal experts advise employers on tax efficient renumeration, advising on benefits in kind and expenses including salary sacrifice, flexible benefit arrangements and beneficial loans.

We also advise on the tax consequences of utilising various forms of remuneration designed to retain and compensate their employees. We are well placed to work alongside our very well-regarded employee incentives team, providing tax advice on granting shares or share options to employees.

We also regularly advise on the tax implications of the termination of employment and the taxation of termination and settlement payments, including advice on Post-Employment Notice Payments (PENP).

In the globalised economy, businesses and individuals often work across borders. Whether it is a UK resident going to work overseas for a time, overseas residents coming to work in the UK, or individuals moving in and out regularly, it is important to consider what tax liabilities arise. We advise businesses and individuals as to the UK tax issues that may impact them, from questions of tax residence and double taxation to short term business visitor arrangements, PAYE and social security rules. Our International Private Client team are also on hand to assist in relation to personal taxation.

We assist businesses with advice on individuals’ employment status, including advice on off payroll working (IR35), personal service companies, managed service companies and the intermediaries and agency legislation.

Our lawyers are highly regarded and successfully deliver complex advice in a timely and commercial manner.

We advise businesses in relation to:

• Employee Remuneration – the team advises on the tax consequences of employers utilising various options designed to retain and compensate their employees using, for example, employee share schemes, employee benefit trusts and bonuses.
• Termination of Employment – we regularly advise on the taxation of termination payments paid to employees, including advice on Post-Employment Notice Payments (PENP). We have developed a free to use app that calculates PENP.
• Internationally Mobile Employees – In the globalised economy, businesses and individuals often work across borders. Whether it is a UK resident going to work overseas for a time, overseas residents coming to work in the UK, or individuals moving in and out regularly, it is important to consider what tax liabilities arise. We advise businesses and individuals as to the UK tax issues that can arise, from questions of tax residence and double taxation to short term business visitor arrangements, PAYE and social security rules.

Access the PENP calculator

You can access the calculator via the following link: Birketts’ PENP calculator.