Skip to main content

Reward your staff this Christmas

 

We are delighted once again to announce the launch of our 2017 HR:4UK Tax Paid Christmas Card Campaign.   Our HR:4UK Tax Paid Gift Cards provide you with a tax efficient way of motivating and incentivising your staff.  By using our HMRC approved scheme you can achieve savings of up to 19% on the amount you gift to your employees.

Let me explain ... it is worth the explanation!

 

HR:4UK's Tax Paid Gift Card is designed to save you money and to take the hassle out of having to worry about tax regulations and the completion of forms for HM Revenue and Customs – that’s because we do it for you!

Let's assume you would like to give an employee a bonus of, say, £100 - if you were to pay this £100 in their pay as a cash bonus, in order for them to have the full benefit of the £100, you would have to factor in tax and NI contributions.

If, you choose to pay the £100 in your employees’ pay, in order for them to have the full benefit of the £100 you would have to add the employees NI contributions and the employees tax to the £100 (in the example below, an additional sum of £47.06).  You will also be liable for the employer's NI of £20.29.

If you were to pay your employee £100 in cash (without taking into consideration the tax and NI deductions) they would only receive £68 of that £100 bonus (£100 less the employee tax and NI contributions).  Similarly, you would still be liable for the employer's NI of £13.80.

However, if you choose to pay the £100 by way of a gift card, ordering the card through HR:4UK will give you an automatic discount of 5% immediately saving you 5%.

You would still be required to pay the tax and NI contributions on the gift but this would be at the reduced rate of £95 (rather than tax on the full amount of £147.06).  It follows that the NI contribution would also be on the lower amount of £95.   As such, the total saving to you is 19.25%. 

So that you can see "at a glance" the difference in the costs, we have broken the savings down and provided you with a comparison between paying a bonus by way of cash or by way of a gift card.

 

Description

Payroll Cash Payment

Cost through gift card

Cost of gift/cash to employer

£147.06

£95.00

    Employee's tax @20%

£29.41

Nil

    Employee's NI @12%

£17.65

Nil

    Employer's NI @13.8%

£20.29

Nil

    Tax through HR4UK scheme

Nil

£23.75

    NI through HR4UK scheme

Nil

£16.39

Total REAL cost to employer of gift

£167.35

£135.14

     

Saving

 

19.25 % (£32.22)

 

The savings come from accounting to HMRC in terms of tax and NI contributions in the correct way and on the reduced amount. 

HR:4UK takes away the administrative burden by having a simple application process, including filing returns on your behalf, accounting for liability of the basic rate tax and N.I. It could not be easier to reward your staff, whilst at the same time saving you money.

The cards are accepted at thousands of UK retail outlets including Argos, M & S, Iceland, River Island, ToysRus, Halfords, Matalan, Homebase, Boots, Debenhams and many more. Tax Paid Gift cards can be used for employee long-service awards, as Christmas or birthday presents, as a ‘thank you’ for carrying out extra work or as rewards for achievement under structured bonus/incentive schemes.

Tax-paid gift cards from HR:4UK allow your staff to choose the gift they want from one of thousands of retail outlets or to pay for all or part of a holiday. It’s all fully covered by tax regulations and there are no forms to complete for HM Revenue and Customs (HMRC).


Don't delay in placing your order as time is running out and the final date for orders is Friday 8th December 2017.

To place your order for HR:4UK’s Tax Paid Gift Cards please call 01455 444222 selecting option 3.   

For terms and conditions please click here