How we can help
Albert Goodman’s employment tax advisors are perfectly placed to help you with all aspects of tax.
No employer is too small. We advise employers across the private, public and charity sectors on complex employment tax matters and strategies.
We provide expert guidance on:
- Employee benefits-in-kind (cars, vans, accommodation etc)
- Payrolling of benefits in kind
- PAYE Settlement Agreements
- Trivial benefits
- Form P11D completion
- National Minimum Wage Compliance
- Off-payroll working - including employment tax status, training processes and strategy
- HMRC PAYE Compliance reviews
- Termination payment tax/NIC treatment
- Construction Industry compliance and HMRC enquiries
National Minimum Wage Compliance
The complexities of National Minimum Wage mean that many employers can inadvertently be caught out even where headline salaries are significantly above rates.
HMRC actively reviews employers, so proactive compliance is essential.
The rates change on 1 April every year. The rates from 1st April 2026
| 21 and over | 18 to 20 | Under 18 | Apprentice | |
|---|---|---|---|---|
| April 2026 | £12.71 | £10.85 | £8 | £8 |
Apprentices
Apprentices are entitled to the apprentice rate if they’re either:
- aged under 19
- aged 19 or over and in the first year of their apprenticeship
There are a number of areas where employers can be caught out despite wanting to ensure that their employees are being paid at least National Minimum Wage. This can include not taking into account salary sacrifice or relevant deductions or mis-understanding the type of worker.
Employment Tax Training for your team
We can also offer bespoke training for your team to help their understanding of specific areas of employment tax.
Training topics include:
- Off-payrolling training (IR35)
- How to comply with National Minimum Wage
- PAYE Settlement Agreement training and specific exemptions
Speak to an Employment Tax Advisor
Should you wish to discuss an employment tax related matter, contact Caroline Jones, Head of Employment Tax at [email protected].
FAQ’s
What are benefits in kind?
A benefit in kind (BIK) is a non‑cash benefit that an employer provides to an employee (or director) instead of, or in addition to, salary, and which is taxable. Common examples of benefits in kind include, company cars, fuel, private medical insurance and living accommodation.
When is mandatory payrolling of benefits in kind being introduced?
If you provide taxable benefits in kind to your employees, you will need to submit an annual form called a P11D. From April 2027 HMRC will require you to account for tax and Class 1A NIC in real time via payroll.
What is a PAYE Settlement Agreement (PSA) and when would an employer need one?
If you provide your staff with certain benefits and you don’t want them to pay tax on the benefit value, a PAYE Settlement Agreement (PSA) enables you to cover the cost of tax and National Insurance due on their behalf with one annual payment. You must apply to HMRC for a PSA by 5 July following the tax year end in which benefits were provided.
When do off payroll (IR35) rules apply?
Off payroll (IR35) rules apply to all medium and large businesses as well as public sector organisations. If you fall within the scope of the off-payroll rules you must consider the employment status of all Personal Service Companies you engage either directly or indirectly (for example via agencies). Failure to do so can leave businesses open to significant claims for tax and National Insurance penalties and interest.
Are settlement payments taxable?
It is vital that you consider each element of any termination payments to identify any taxable elements before applying the exemption. This includes all contractual payments such as accrued holiday pay, Pay in Lieu of Notice (which needs to be compared with HMRC’s Post Employment Notice Pay (PENP)) terminal bonuses etc. Many employers assume that the first £30,000 of any termination payment is not taxable – this is not so, it can be complicated.
How can I have underpaid National Minimum Wage (NMW) when I pay my workers more than National Living Wage?
The main reasons employers are inadvertently breaching National Minimum Wage (NMW) are due to areas such as miscategorising workers, not taking into account salary sacrifice or other deductions, incorrect recording of working time and inclusion of incorrect pay elements. HMRC are actively reviewing employers to ensure compliance so it is important to seek advice should you need assistance.