Employment Tax

Technical
1 April 2017

New IR35 rules take effect from 6 April 2017. Where the engagement is with a public sector body the responsibility for deciding whether or not IR35 applies moves to the public sector body. If an engagement falls with the new IR35 rules then the person paying the PSC (that is the public sector body or third party agency) is responsible for deducting tax and NICs under PAYE. A new online tool from HMRC (the ‘employment status service’) will be made available to assist in deciding whether or not IR35 applies to an engagement.

Technical
1 April 2017

A tax charge is being introduced on ‘disguised remuneration loans’ outstanding at 5 April 2019. This charge is to be collected via PAYE. Additionally, new ‘disguised remuneration’ rules are being introduced for the self-employed, similar to those currently applying to employees. Finally, corporate deductions for contributions to employee benefit trusts are to be denied unless the associated PAYE/NIC is paid within 12 months of the end of the accounting period.

Technical
1 March 2017

The Financial Conduct Authority (FCA) have consulted on handbook changes relating to the Lifetime ISA. LITRG’s response points out that tax complexities need to be considered by advisers.

Technical
1 March 2017

LITRG responded to the Committee’s inquiry highlighting concerns about the impact of the current structure of universal credit on the self-employed.

Technical

LITRG and CIOT have made submissions on the draft Finance Bill 2017 and the draft National Insurance Contributions Bill 2017 clauses in relation to the simplification of the income tax and National Insurance contributions (NIC) treatment of termination payments.

Technical
1 March 2017

LITRG commented on the proposed introduction from 6 April 2017 of a new £500 tax exemption for employer-funded pension advice.

Technical
1 February 2017

LITRG commented on the consultation about a new postgraduate doctoral loan scheme, highlighting that clarity is needed relating to repayments due via the tax system.

Technical
1 January 2017

LITRG were recently invited to a private seminar held by the Royal Society for the encouragement of Arts, Manufactures and Commerce (the RSA) to debate the issue of employment status for those that work in the gig economy.

Technical
1 January 2017

Recent developments at the OTS include the appointment of Paul Morton to success John Whiting.

Technical
1 December 2016

The government is proposing to restrict the range of benefits-in-kind (BIK) that can be included in a salary sacrifice or flexible benefits arrangement by making the BIK chargeable to income tax and Class 1A employer NICs, even if normally exempt from tax and NICs. In our responses the CIOT, LITRG and ATT have all disagreed with the proposals as they stand as they will introduce considerable complications to this area and increase the probability of the employer getting it wrong. We suggest that the government steps back and consults on a more targeted approach to specific BIKs.