Recruiting a high earner - be careful!
Many additional benefits might be included in the offer package to make sure you get the right person.
But be careful…
High-flying, high earners have usually amassed substantial savings from their previous roles.
So why should you care?
There is a form of protection high earners may have in place, specifically agreed with H M Revenue and Customs (HMRC), meaning they are legally allowed to preserve their rights to higher tax relief relating to their pensions.
High flying, high earners have usually amassed substantial savings from their previous roles and there is a form of protection high earners may have in place, specifically agreed with HMRC.
The issue facing you as their new employer is that you may not know this, your high-earning new employee may fail to tell you, or even have forgotten that they have this agreement in place.
By automatically providing them with group life assurance means that you may have inadvertently breached their valuable taxation protection, which ultimately could cost them thousands of pounds. A disgruntled high earner may cost your business a lot of money.
This article was supplied by Hannah Stebbings, senior Employee benefits consultant, Mattioli Woods
