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Tax Advice and Remuneration Report

Autor:   •  February 9, 2019  •  940 Words (4 Pages)  •  51 Views

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Along with canteen meals, a mobile phone could be supplied as part of the ‘benefits in kind’ package. Given the magnitude of emails and calls that Mrs. Windsor will be receiving after taking on the position as the CEO of the company, it can be suggested that an iPhone should be provided by the company. The cost of usage of the phone is approximately £1,139. This figure comprises of considerations of the cost of the phone and its annual billings.

Another benefit that can be provided that involves tax reductions is an annual function, for example a Christmas party. Such provision may offer an extra £150 to Mrs. Windsor’s overall benefits, which, may seem menial but can be beneficial towards the workers’ work ethics and motivation in the long run.

Business Travel to Bali

Extensively, the company may offer Mrs. Windsor a luxury business trip to Bali, Indonesia. The total cost of first class return tickets from Heathrow to Indonesia would approximately be £6590. The hotel booking would cost £170 per night, and thus, £1190 for a week. The total cost of £7780 can be treated as an additional benefit in kind for Mrs. Windsor after taking on this job


Falling in the higher rate tax band, Mrs. Windsor is unqualified to Childcare tax credit, however, qualified to claim Childcare Vouchers from the employer. Furthermore, claiming childcare vouchers may reduce the chances of qualifying for Childcare tax credit. However, since Mrs. Windsor certainly ineligible to claim childcare tax credit, Childcare Voucher is the best alternative. Mrs. Windsor qualified to £1,364 annually per child. accordingly, this will give a total benefit of £5,456. In addition, Mrs. Windsor wouldn’t pay tax or NICs on that amount. Undertaking this Mrs. Windsor remaining salary would be greater after paying for Childcare with Vouchers.


To sum up, Mrs Windsor could claim some benefit from the company. Mrs Windsor can get exempted benefit from the canteen meals, which cost £2,250, iPhone and the annual cost which cost £1.139. Another benefit Mrs Windsor will receive is the annual function cost as well as the child benefit, which are £5,456. The vehicle taxable benefit would be £12,531.25 and the business trip to Bali would be £7,780. As Mrs Windsor's salary is £463,225, so she is an additional ratepayer. Thus, we would recommend Mrs Windsor to contribute to the pensions scheme as it is a deductible expenditure and it would be also to raise the basic tax band.


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