Employment Tax

Technical
1 May 2018

Last month, Meredith McCammond of LITRG explored how Real Time Information data is used in the benefits system. In this article, we explore potential problems that may occur and provide some important updates on the use of RTI data in the universal credit system.

Technical

The government published its response to the Taylor review of modern working practices in February 2018. As part of that response a consultation on employment status was published, to which the CIOT and ATT will be responding.

Technical
1 May 2018

We have received reports that HMRC are re-working SA302 payment calculations for some self-employed clients to take out the Class 2 National Insurance contributions.

Technical

HMRC published a short consultation in February 2018, looking at making changes to the PAYE Settlement Agreement (PSA) process to remove the requirement for employers to annually agree their PSA with HMRC and pave the way for a future online process. CIOT, ATT and LITRG responded to HMRC and while welcoming the introduction of ‘enduring agreements’ raised concerns around the removal of the reasoning for HMRC to cancel a PSA contained in the current legislation.

Technical
1 April 2018

The government has consulted further on the principle of tax conditionality as a means of tackling the hidden economy by requiring those who require licenses to operate to demonstrate they are properly registered for tax.

Technical
1 February 2018

A round up of recent HMRC employment taxes related consultative forum meetings, including the Employment and Payroll Group, Student Loan Consultation Group, and IR35 Forum.

Technical
1 January 2018

The CIOT has welcomed HMRC’s intention to preserve in legislation the effect of ESC A37 and the administrative practices at EIM03002, EIM01120 and EIM61030.

Technical
1 December 2017

In September 2017 the government published draft clauses for the Finance Bill which will be published in December 2017, known as the Winter Finance Bill, along with accompanying explanatory notes, tax information and impact notes and other supporting documents. The CIOT commented on a number of these.

Technical
1 August 2017

PAYE is changing, HMRC is starting to use RTI data from employers in real time when recalculating employees’ tax codes. The RTI feed will be used to estimate earnings when a tax code review is triggered, for example when a new benefit-in-kind is notified. Where HMRC calculate that the new tax code will under-collect tax for the remainder of the year an in-year restriction will be included in the tax code, aimed at collecting that estimated underpayment in year.

Technical

The call for evidence was initiated by the (last) government to consider (i) whether the tax rules for expenses of employment need to change to reflect changes in employment engagement practices, (ii) whether the rules and their administration can be made simpler and clearer, and (iii) why there has been a 25% increase since 2009-10 in claims to HMRC from employees for tax relief on non-reimbursed expenses. In their submissions to the call for evidence, the ATT, CIOT and LITRG suggest that the existing system is not broken, per se, but could certainly be improved.