Special Payroll Arrangements

Disguised remuneration schemes are tax avoidance arrangements that HMRC challenges aggressively. These schemes attempt to pay employees or directors through loans or other indirect methods to avoid tax and National Insurance, but HMRC treats the payments as taxable income and...

5 min read

Employer Supported Childcare has been closed to new applicants since 4 October 2018, but existing users can continue to benefit from tax and National Insurance relief on childcare vouchers and directly contracted childcare. If you're already in the scheme, understanding how the exemptions work can...

4 min read

If you run an employment agency or act as an intermediary placing workers with clients, you may have reporting obligations to HMRC — even if you don't operate PAYE on those workers' payments. Understanding when and how to report is essential to avoid penalties and remain compl...

4 min read

If you employ someone who pays tax both in the UK and in another country on the same earnings, you may be able to claim foreign tax credit relief (FTCR) on their behalf through your payroll. This allows you to offset the foreign tax they've paid against the UK tax due under PAYE, preventing them...

5 min read

Some employers need to deduct National Insurance contributions from their employees' pay without deducting any Income Tax. These arrangements are called National Insurance only schemes, and they apply in specific situations where your employee's earnings are subject to NICs bu...

4 min read

If you employ someone who has recently left the armed forces in their first civilian job, you may be able to claim relief from employer National Insurance contributions for their first year of employment. This relief can provide significant savings, but you need to understand who qualifies and how...

4 min read

In certain unusual circumstances, employees need to set up their own PAYE scheme to deduct tax and National Insurance from their employment income. This happens when there's either no Income Tax liability or no employer's National Insurance liability. Separately, employers can...

5 min read

Umbrella companies are businesses that employ temporary workers on behalf of recruitment agencies. If you're considering using umbrella companies to engage workers, or thinking about working through one yourself, it's important to understand how they operate, who's responsible for what, and what...

7 min read