Retaining and motivating key employees is a challenge as skilled individuals are in high demand. Employers view share schemes as an effective method of reward as no immediate cash is required.

Retaining and motivating key employees within the oil industry is a challenge as skilled individuals are in high demand. With a top tax rate of 50% and the recent additional 1% on National Insurance, many companies are reviewing their executive remuneration arrangements with a view to increasing the tax efficiency of rewards.

Retaining key employees can maximise the value of your business

Business owners often overlook the value key employees contribute to the company's worth when growing or building a successful business. Securing the long term commitment of key employees is often essential to ensure the Company's ongoing profitability and growth, with a view to taking a further step on the path to an ultimate exit from the business.

Business owners lead busy lives and tax planning is often relegated to be done 'later, when I have time', but if a business is tax inefficient then funds which could supplement cash flow or fund growth may be going to HMRC instead!

The Research & Development ("R&D") tax schemes were introduced back in 2000 and 2002 to encourage companies to undertake innovation. Since then the reliefs have been improved considerably and this year's Finance Act significantly enhanced the value of the reliefs to small and medium-sized enterprises ("SMEs").

HMRC Consultations on Statutory Residence Test and Reform of Taxation of Non-Domiciled Individuals
At Budget 2011 the Government announced that it would introduce a statutory definition of tax residence and reform the taxation of non-domiciled individuals. Consultation documents have now been published setting out the Governments proposals on both areas.

Aberdeen, the energy industry's European capital, has a growing international focus with ever more local companies assigning personnel to work overseas. Whilst no 'Standard' international assignment exists, commonly employees work rotational arrangements, e.g. 28-days overseas, 28-days home. Such work patterns lead to various issues such as double taxation, double PAYE and double National Insurance.

The 2011 Budget increased the limit for Entrepreneurs Relief (ER) to £10 million per person which makes this a very generous relief which should not be missed.

These are trying times for individuals working overseas with the unrest in the Middle East and North Africa. For security reasons many have returned to the UK, however could this have an adverse affect on their residency status for UK tax purposes?

SIMPLIFIED PARTIAL EXEMPTION METHODS