Employment
Employment tax is one of the most sensitive and frequently scrutinised areas of business compliance. As soon as you begin hiring staff or rewarding directors beyond a salary, you are subject to a wide range of rules that fall under employment tax. Mistakes here can be costly, leading to HMRC enquiries, penalties, or reputational damage.
At My Tax Consultants, we support businesses of all sizes with clear, practical, and detailed advice across all aspects of employment tax. Our services cover everything from setting up PAYE schemes to managing employee benefits, completing P11D forms, and handling HMRC reporting requirements. We help employers meet their legal duties with confidence and efficiency.
What Is Covered Under Employment Tax?
When you employ staff, or even if you’re a director of your own limited company, your business takes on legal responsibilities in relation to how income, benefits, and expenses are taxed. These responsibilities apply whether the employees are full-time, part-time, or temporary.
Some of the key areas that fall under employment tax include:
PAYE (Pay As You Earn)
We help you register with HMRC, operate the scheme correctly, and apply the right codes to ensure accurate deductions of income tax, National Insurance, and other contributions such as student loans. We also support Real Time Information (RTI) reporting requirements.
Benefits in Kind & P11D Reporting
When employees receive employment benefits—such as company cars, private healthcare, or other perks—these often require reporting via P11D forms. We handle the classification of each benefit, calculate Class 1A National Insurance contributions, and ensure timely submissions to HMRC.
Employment-Related Securities
If your business provides employees or directors with shares or share options, these must be reported to HMRC using ERS returns. We offer detailed guidance to help you stay compliant with the tax treatment of shares, restricted stock, and EMI schemes.
Termination Awards
Payments made when employment ends—such as redundancy pay, compensation, or settlements—may be subject to tax and National Insurance. We help you apply the correct exemptions and ensure the right amounts are reported through payroll or via supplementary forms.
Expenses & Allowances
We support the accurate treatment of travel and subsistence expenses, working from home allowances, mobile phones, professional subscriptions, and other business-related reimbursements to employees.
Specialist Support with PAYE Reporting Obligations
As part of our employment tax services, we ensure full compliance with PAYE reporting duties under Real Time Information (RTI). You’ll receive support on:
- Weekly or monthly reporting of payments to HMRC
- Adjusting for student loans, maternity or paternity pay, and other statutory payments
- Managing Employment Allowance where applicable
- Year-end reconciliation and submission of final EPS (Employer Payment Summary)
Errors or delays in PAYE reporting can attract interest and penalties from HMRC. Our team will manage the reporting timetable, reconcile your liabilities, and liaise with HMRC on your behalf if needed.
Employment Tax Risk & HMRC Enquiries
HMRC compliance checks into employment tax arrangements have become increasingly common, especially in industries with irregular payments or benefits. If you receive a compliance check, or you wish to review your exposure before HMRC contacts you, we offer:
- PAYE and National Insurance health checks
- Review of benefits in kind and PSA eligibility
- Employee share scheme reviews and ERS filing assistance
- Advice on correcting historical PAYE errors and making voluntary disclosures
In many cases, our support can reduce penalties and improve future compliance.
PAYE Settlement Agreements (PSAs)
Where employers provide small or irregular benefits—such as staff gifts, entertaining, or one-off payments—it may be more appropriate to deal with these via a PAYE Settlement Agreement (PSA). We help you:
- Identify which expenses can be included in a PSA
- Apply for and agree the PSA with HMRC
- Calculate the total tax and NIC due under the PSA
- Complete the annual PSA submission on time
Using a PSA can simplify your payroll process and prevent incorrect benefit treatment.
Statutory Payments & Employment Allowance
Our team helps you understand your responsibilities around Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), and other statutory entitlements. We make sure these are correctly handled through your payroll system, claimed back where appropriate, and accurately recorded.
We also advise on claiming Employment Allowance, which can reduce your employer’s National Insurance bill by up to £5,000 per year (subject to eligibility).
Minimum Wage Compliance
With regular updates to National Minimum Wage (NMW) and National Living Wage (NLW) thresholds, it’s essential to stay current and compliant. We carry out audits to ensure you are paying staff appropriately, especially where deductions for benefits, uniforms, or accommodation are made.
Construction Industry Scheme (CIS) Considerations
If you hire subcontractors within the construction sector, you may have obligations under the Construction Industry Scheme (CIS). Although not directly part of employment tax, CIS has many payroll and employment-related crossover rules. We support businesses in assessing employment status, deducting tax from subcontractor payments, and submitting CIS returns to HMRC.
International Mobile Employees
Employing staff who work across borders introduces additional complexity. We provide support on international mobile employees, including payroll withholding, dual tax treaty guidance, social security arrangements, and overseas expenses reporting.
Who We Work With
Our employment tax services are trusted by:
- SMEs and family-run businesses
- UK subsidiaries of international groups
- Owner-managed companies
- Start-ups with first-time employees
- Firms undergoing growth or organisational change
We take the time to understand how your business operates so our advice is practical, accurate, and commercially relevant.
Speak to My Tax Consultants
Whether you’re managing a small team or dealing with a larger workforce across multiple locations, employment tax requires constant attention. My Tax Consultants supports you with PAYE, employment benefits, P11D reporting, employment-related securities, termination awards, statutory payments, national minimum wage, and more.
Get in touch today to book a consultation or request a payroll and employment tax review from our team.
