Minimum wage question

[Nixon Williams]

I would agree that there have been no known cases but that does not mean to say that there will not be.

I am quite happy with the advice we offer, all our clients can listen and act on our advice or can make their own choice. We offer that choice.

Some accountants are quite happy for the riskier approach as they can collect more fees with investigation work.

Alan

[THEPUMA]

I would agree that there have been no known cases but that does not mean to say that there will not be.

I am quite happy with the advice we offer, all our clients can listen and act on our advice or can make their own choice. We offer that choice.

Some accountants are quite happy for the riskier approach as they can collect more fees with investigation work.

Alan

Total nonsense.

The stream at the bottom of my garden has never burst its banks but I don't think I'll bother spending thousands of pounds building flood defences.

You have to take more responsibility for the advice you give. Of course your clients can override you but they are paying you for advice and 99% of them will follow your recommendations.

We have never collected a single penny relating to investigation work in connection with NMW. My advice is based upon saving my clients as much tax as possible. Nothing else.

[Nixon Williams]

I am happy with what we do, and I just like to remind people that there is an alternative view.

I can assure you that our clients can make their own decisions but based on a range of options that we offer them.

Your comparison is not really realistic, but as you have already stated, we have gone over this ground before and I am not going to get into a game of ping pong with you.

[KackAttack]

In any event there is a good reason to pay NMW if, for example, you are looking at childcare vouchers. These seem to insist that a contract of employment is in place for any scheme providers.

Also any benefit paid by salary sacrifice (which can have beneficial NI effects) needs a contractual salary.

In the scenario oulined below:

Salary £5435
Pension contributions £20000
Dividend payment £40000
Childcare vouchers £2860 (£55 per week)

Could the Director claim to have an 'implied' contract of Salary + Pension contributions + Childcare Vouchers which take him over the NMW, but through salary sacrifice collects the pension contribution + childcare vouchers instead of actual salary.

[ASB]

In the scenario oulined below:

Salary £5435
Pension contributions £20000
Dividend payment £40000
Childcare vouchers £2860 (£55 per week)

Could the Director claim to have an 'implied' contract of Salary + Pension contributions + Childcare Vouchers which take him over the NMW, but through salary sacrifice collects the pension contribution + childcare vouchers instead of actual salary.

No, salary sacrifice cannot reduce your cash pay to below the NMW.