Based on the theme of what you can do as a business owner to recruit and retain your staff. Recruiting and retaining staff is fundamental to the success of most businesses but also being one of the most pressing issue facing businesses today outside the ‘current political uncertainty’. We will be joined by a recruitment specialist who will share tips on how to differentiate your business to the ‘right’ prospective candidate; a solicitor (Verity Slater and Carrianne Matta of Stephen Scown) to ensure you do not trip up on potential legal pitfalls in the recruitment process and one of our tax specialists (Martin Brown) sharing some ideas of tax efficient remuneration and ‘share ownership’. This presentation will cover: Qualities to look for in a candidate What are today’s candidates looking for Avoiding discrimination pitfalls and ensuring fair recruitment Getting employment contracts in place and issues around relocation packages Tax efficient company cars (historically one of the most popular benefits); Changes to auto-enrolment and salary sacrifice for pensions (a major staff cost component); and Delivering key staff equity ownership, to aid retention and succession planning

1. Recruiting and retaining staff
Breakfast Briefings – Spring/ Summer 2019 Welcome: Andrew James, PKF Francis Clark
7 May 2019

2. pkf-francisclark.co.uk
Administration

3. pkf-francisclark.co.uk
Key stats
• Biggest challenges to businesses today
• What the stats say
Source: https://www.telegraph.co.uk/business/challenges/uk-sme-skills-gap/
• Industry shortages
• Lack of talent?
• It’s the little things…
https://www.telegraph.co.uk/connect/small-business/little-things-attract-top-talent/

4. pkf-francisclark.co.uk
Sub-topic Presented by Time
(approx.)
What to look for in a candidate and what
they are looking for from you
Oliver Watson 15
Tax efficient remuneration Martin Brown 15
Avoiding legal pitfalls Verity Slater and Carrianne
Matta
15
Recruiting and retaining staff
Presentations:

5. Recruiting Staff
Francis Clark Breakfast Briefing, May 2019
Oliver Watson – Managing Consultant

6. Overview
What can you do to attract
the right candidate?
What to look for in a
candidate
Candidate expectations

7. What can you
do to attract
the right
candidate so
they choose
you?

8. What to look
for in a
candidate

9. Candidate
expectations

10. Summary
What can you do to attract
the right candidate?
What to look for in a
candidate
Candidate expectations

11. Oliver Watson – Managing Consultant
01872 306 111
oliver@watsonevans.co.uk
www.watsonevans.co.uk

12. T R U R O
B R E A K F A S T B R I E F I N G
7 May 2019

13. EMPLOYER
SOLUTIONS

14. SALARY SACRIFICE:
PENSIONS AND CARS

15. SALARY SACRIFICE ARRANGEMENTS
 Give up salary
 Get a benefit

16. HOW SALARY SACRIFICE WORKS
Salary sacrifice can still work for:
 Additional holiday
 Cycle to work
 (Existing Childcare vouchers)
 Pensions
 Ultra-low CO2 Cars

17. ILLUSTRATION OF PENSION
SALARY SACRIFICE
FOR EMPLOYERS
Workplace pensions
 From 6th of April, they are now:
• Employee contribution: up to 5%.
• Employer contribution: 3% minimum.
• Total minimum contribution: 8%.
• Employers save their 13.8% NIC through
pension salary sacrifice
Saving over 20% of the total employer
pensions bill

18. ILLUSTRATION OF PENSION SALARY SACRIFICE
EMPLOYEE POSITION
Notional 60,000 Notional 60,000
sacrifice N/a sacrifice 7,500-
Gross 60,000 Gross pay 52,500
'EE pension 6,000 'EE pension -
Taxable Income 60,000 Taxable Income 52,500
TAX TAX
Personal allowance 12,500 @ 0.0% = - Personal allowance 12,500 @ 0.0% = -
BR Band 43,500 @ 20.0% = 8,700- BR Band 37,500 @ 20.0% = 7,500-
HR band 4,000 @ 40.0% = 1,600- HR band 2,500 @ 40.0% = 1,000-
10,300- 8,500-
NIC NIC
Earnings to £166/wk 8,632 @ 0.0% = - Earnings to £166/wk 8,632 @ 0.0% = -
up £962/wk 41,392 @ 12.0% = 4,967- up £962/wk 41,392 @ 12.0% = 4,967.04-
above £962/wk 9,976 @ 2.0% = 200- above £962/wk 2,476 @ 2.0% = 50
5,167- 4,918-
'EE pension 6,000- 'EE pension -
Take Home 38,533 Take Home 39,082
Child benefit 2 Children 1,789 Child benefit 2 Children 1,789
Child benefit tax 1,788.80- Child benefit tax 447.20-
TOTAL CASH 38,533£ TOTAL CASH 40,424£
Better off: 1,891£
Pension Pot Pension Pot
Employee contribution 6,000 Employee contribution 0
Tax relief 1,500 Tax relief -
Employer contribution (sacrificed) Employer contribution (sacrificed) 7,500
Pension Pot 7,500£ Pension Pot 7,500£
No Salary Sacrifice With Salary Sacrifice

19. SALARY SACRIFICE COMMON
PITFALLS
 This goes beyond the contract. HMRC will
look at lots of factors, e.g. FAQ’s, practice,
payslips
 A salary sacrifice arrangement must not
reduce an employee’s cash earnings
below the National Minimum Wage (NMW)
rates.
 Wider impacts – student loans, benefits
 Can get post implementation clearance from
HMRC

20. CAR SALARY SACRIFICE
£53 per month employee tax1 £53 per month employee tax1
£46 per month employee tax1 £12 per month employee tax2
1 estimated list price, higher rate taxpayer
2 estimated list price, basic rate taxpayer

21. REALISTIC IN THE REAL
WORLD?
 Every car on the preceding slide has quoted
ranges of around 300 miles.
Reality? Around 240
• HOME CHARGER IS ESSENTIAL
• Need off-road parking
• Circa £500 after grants
• can fund via employee loans
• Truro to Exeter: 92 miles
• Truro to Taunton: 120 miles
• Truro to Bristol: 169 miles –
requires chargers at destination
• Truro to Poole: 168 miles –
requires chargers at destination
• Truro to Cardiff: 198 miles –
requires chargers at destination

22. EMPLOYEE ILLUSTRATION
Jaguar I-pace Cost to
employee £450 a month net
Jaguar I-Pace - higher rate taxpayer
Lease cost £700 per month
List price 68,000
2020/21 2021/22
£ £
Car BinK rate 0 0
P11D car benefit 1,360 1,360
annual car benefit tax 544 544
£ £
Per month car tax 45.33 45.33
Per month net salary sacrificed 406.00 406.00
Monthly net cost 451.33 451.33

23. EMPLOYEE ILLUSTRATION
Hyundai Kona cost to
employee £270 a month net
Hyundai Kona - Basic Rate taxpayer
Lease cost £380 per month
List price 35,000
2020/21 2021/22
£ £
Car BinK rate 0 0
P11D car benefit 700 700
annual car benefit tax 140 140
£ £
Per month car tax 11.67 11.67
Per month net salary sacrificed 258.40 258.40
Monthly net cost 270.07 270.07

24. EMPLOYER
ILLUSTRATION
Based upon 30 staff, estimated saving
(subject to insurance costs)
£56,000
Salary sacrifice
Employer's NIC
Annual Employer Estimated Total Savings
List price Lease via
salary
sacrifice
B-inK NIC
sacrifice
saving
Revised NIC Annual NIC
Saving
Average
Mileage
Saving Savings per car number
Staff Car e.g. Hyundai Kona 35000 360 700 596.16 96.6 499.56 2500 1025 1,525£ 20 30,491£
Exec Car e.g. Jaguar ipace 68000 700 1360 1159.2 187.68 971.52 4000 1640 2,612£ 10 26,115£
56,606£
Business Mileage
claims

25. HOW WE CAN HELP – OUR
EXPERIENCE
 Policies
 Insurance
 Servicing
 Tires and maintenance
 Whilst off sick
 Maternity etc + NMW
 Leaving employment/ early termination
 Impact on other benefits
 Practical issues
 Finding providers
 Financing and cost
 Installing charge points
 home
 office
 Other issues
 Range anxiety
 Individual calculations and
suitability

26. SHARE SCHEMES
Enterprise Management Incentives (EMI)

27. SHARE SCHEMES
 Employee share ownership can help to
retain and motivate staff.
 Get this right:
 capital gains tax at 10%
 CT deduction
 Get this wrong:
 PAYE and NIC >60%
 no CT deduction
 How much is a promise worth?

28. SHARE SCHEMES
 Manage up front cost:
 EMI plans
 Deferred purchase plans
 Growth shares
 Reduce income tax risks on ‘sale’

29. CASE STUDIES
 The promise
 Promised a cash payment on sale of £500,000
 EMI planning just 6 months before sale saved
circa £90,000 in tax
 Missed opportunity: could have saved £185,000
 Making good cost circa £180,000
 The key director
 Unapproved option over 25% of the value of the
subsidiary he managed
 Replaced with EMI plan
 Sale price of the group £25m, sale price of
subsidiary £10m
 Saving circa £1m

30. RECRUITMENT AND
RETAINMENT OF STAFF
BUSINESS BRIEFING
MAY 2019
May 2019

31. Verity Slater
Partner
Tel: 01872 265100
Email: v.slater@stephens-scown.co.uk
Web: www.stephens-scown.co.uk
May 2019
Carrianne Matta
Solicitor
Tel: 01872 265100
Email: c.matta@stephens-scown.co.uk
Web: www.stephens-scown.co.uk

32. Recruitment May 2019
• Application Forms
• Interviews
• Heath Questions
• Recruiting friends

33. Contracts of Employment May 2019
• Timescales
• Written Terms
• Restrictive Covenants
• Notice

34. Relocation May 2019
• Tax Benefits
• Policies
• If they don’t stay…

35. Company Car May 2019
• Contract and Policies
• Usage and Expenses
• Employee’s Responsibilities
• Disqualification

36. The information in this presentation is intended to be general
information only and should not be interpreted as legal advice.
English law is subject to change so whilst Stephens Scown
LLP seeks to ensure the information contained in this
presentation is up to date and accurate, the law can change
quickly and no guarantee is made as to its accuracy which
means the information should not be relied upon. Presentation
slides should not be viewed as an alternative to professional
advice and Stephens Scown LLP does not accept liability for
any action taken or not taken as a result of this information.
May 2019

37. Recruiting and retaining staff
Wrap Up/ What's next: Andrew James, PKF Francis Clark

38. Next…
Q&A and/ or discussion
• With opportunity for Q&A with presenters (and discussion amongst
yourselves)
• Slides and feedback
• CIOS Skills Hub https://www.ciosgrowthhub.com/about-the-skills-hub/
• Digital Skills Partnership Launch – Thursday 9th May, 12 – 3, Eden Project
https://www.eventbrite.co.uk/e/digital-skills-partnership-launch-tickets-59952367144
“Developing and retaining digital talent is imperative to the continued growth of our economy and
this partnership aims to develop digital capability in targeted and innovative ways”
pkf-francisclark.co.uk

39. Next…
Future breakfasts – 1st Tuesday of the month, now bi-monthly (July)
• CIOSIF update
• Green Cornwall #2
• Property matters: overview of commercial property market (and some
tax)
• September – annual F&D breakfast
Other dates for the diary
• Finance in Cornwall – 25th June 2019 (with British Business Bank,
Cornwall Lenders Forum, Plymouth University and Invest in Cornwall?)
• ROC5k – 25th June 2019, 6pm Lemon Quay Truro
• And do not forget our blog, which contains details of new funds/ sources of SME funding that
come to our attention, and our Finance in Cornwall factsheet
pkf-francisclark.co.uk

40. Q&A and/ or discussion
pkf-francisclark.co.uk

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