Our tax team works closely with Fox Williams’ employment, HR and business immigration groups in relation to the tax issues arising in the context of the remuneration of employees and directors.
We act for both employers (corporates and partnerships) and employees and directors on all aspects of employment taxation. We provide pragmatic high-quality advice tailored to each client’s needs and circumstances and combine excellent technical skills with a personable and user-friendly approach.
We have a specialism advising in relation to employee share schemes and equity incentive arrangements. For further details see our equity incentives page.
Our work often has an international dimension, whether we are advising overseas companies on setting up incentive arrangements for UK staff or more generally on the tax treatment of internationally mobile employees.
Where necessary, we are happy to work alongside existing external or overseas advisors, and we have access to a wide international network should non-UK tax advice be required.
Advised a UK individual in relation to the valuation for tax purposes of sums received in the context of a joint share ownership plan (JSOP) over shares in a listed company.
Advised a UK individual on the tax treatment of sums paid on settlement of a dispute involving termination of their employment on the grounds of discrimination.
Advised a Scandinavian based fund on the tax/NIC/PAYE treatment of the re-location of an advisor/director to the UK.
Advised the former CEO of a UK banking group on the tax treatment of damages received in the context of his high-profile claim against the bank for breach of his contractual entitlement to a performance-based share award.
Advised a US based financial services firm in relation to their response to an HMRC PAYE audit.
Advised a UK individual in relation to the tax treatment of a settlement payment received on termination of employment due to permanent ill-health.
Advised the UK subsidiary of a non-UK bank on the tax/NIC/PAYE issues arising in relation to bringing non-UK employees to work in the UK.
Advised a UK financial services business on the tax/NIC/PAYE issues arising in the context of the secondment of certain employees abroad (both within and outside the EU).
Advised a UK bank in the context of IR35 issues arising in relation to the use of consultants.
Advised a UK individual on the tax treatment of sums received on settlement of a dispute involving their entitlement to EMI options following termination of their employment.
We are thinking of taking on an individual as a consultant, do we need to be concerned about tax issues?
Yes, if an individual is providing their services as a consultant either directly or through a personal services company, then you will need to consider whether you could be liable for PAYE and NIC liabilities on amounts paid to them, including under the proposed changes to the IR35 rules (the so-called off-payroll working rules). We can advise further by reference to the particular facts of the case.
We are looking to bring an overseas employee to work for us in the UK, will we need to account for income tax under PAYE and pay national insurance contributions?
The answer will depend upon a number of factors, including the country from which the individual is arriving, the length of time they will be staying in the UK and whether they have previously had any links with the UK. The position can be complicated, particularly where the individual also remains taxable in their home country. We can advise further by reference to the particular facts of the case.
We are making a payment to an employee on termination of their employment. Will it be taxable?
Payments made to employees on termination of their employment can, in certain circumstances, benefit from an exemption from income tax/NICs, in part or in full. In most cases, it should be possible to benefit from a £30,000 exemption from tax, but this will depend upon exactly what the termination payment relates to. In some cases, particularly where payments are made in connection with ill health or discrimination, further reliefs may be available.
What are the most common ways for private companies to reward employees with equity?
The most common way of giving employees an equity interest in a private company is through granting them Enterprise Management Incentive options (EMI options). These have significant tax advantages for both the employee and the employing company. Some private companies will not meet the conditions required to grant EMI options, and for these companies some form of bespoke growth share scheme is commonly used to replicate the economic return of an option but in a tax efficient form. We can advise further on the type of equity incentive scheme which would be best suited to your company.
Do you advise individuals on their personal tax matters?
We advise individuals in the context of their business dealings, so we would advise individuals on the tax treatment of their shareholdings (or proposed investments) in corporate entities, and the impact of proposed disposals or restructurings. We also advise individuals on the tax and national insurance contribution issues arising in respect of remuneration received both during and upon the termination of employment, whether in the form of cash, equity interests or otherwise. We do not provide private client tax advice, and do not advise in relation to inheritance tax or the tax treatment of trusts and settlements.
Legal 500 2023
Legal 500 2023
Chambers UK 2023