Employee Remuneration

The ‘TI Index 5’ is an Employee Remuneration scheme designed for employers wishing to reward bonus earning employees without paying class 1 national insurance contributions on those sums.

An example of its use is an employer wishing to pay employees a combined bonus of £500,000. Taking into account the employers liability to class 1 national insurance, this bonus would cost the employer a total of £569,000.

By utilising the ‘TI Index 5’ the client can pay the bonus without incurring the additional NI costs of £69,000 which means total payable would be £500,000.

Due to the nature of this Employee Remuneration scheme, in addition to the employer benefits, the remunerated employees may require ongoing tax planning advice.

If you would like any more information regarding the Tax Innovations TI Index Range or would simply like to discuss other ways in which we could help you and your company, please do not hesitate to contact Chris either on 01962 856 990 or by emailing chris.pitt@taxinnovations.com