Employment Tax

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.

Technical
1 December 2016

The government is reforming the company car tax rates and bands for ultra-low emission vehicles (ULEVs) from 2020/21. A typical company car is retained for around three years. Consequently, any changes introduced from 2020/21 may affect company car choices made in the next couple of years.

Technical
1 December 2016

In addition to a new digital filing option and the removal of the requirement to prior agree items to be included in a PAYE Settlement Agreement (PSA), HMRC has proposed narrowing the scope of PSAs by removing the ‘minor’ category and, potentially, to also bring the filing date forward to 6 July. CIOT and ATT both responded to this consultation.

Technical
1 December 2016

The government has announced that it agrees with the CIOT and will retain NIC elections, which allow employer’s Class 1 NICs on unapproved share scheme vestings to be transferred to the employee.

Technical
1 November 2016

ATT and CIOT highlights points from their recent responses to this HMRC consultation

Technical
1 November 2016

The CIOT has responded to HMRC’s technical consultation document on draft legislation to amend ITEPA 2003 Pt 7A and introduce a PAYE and NIC charge on ‘disguised remuneration loans’ outstanding on 5 April 2019

Technical

ATT, CIOT and LITRG have responded to the HMRC and HMT consultation document on draft legislation to simplify the income tax and National Insurance contributions (NIC) treatment of termination payments

Technical
1 November 2016

We round up three HMRC forum meetings from September: the Employment and Payroll Group; the IR35 Forum; and the Collection of Student Loans Consultation Group

Technical
1 October 2016

The government proposes changes to the IR35 rules for public sector workers. The ATT and CIOT have responded, raising concerns about the burdens the proposed policy would place on engagers, workers and the latter’s PSCs.

Technical
1 September 2016

The government has proposed stopping employers and employees entering into joint NIC elections to transfer secondary class 1 contributions to employees that arise on a gain from exercising particular employment-related securities options. Difficulties with digitalising the process was cited as one reason to withdraw the elections. The CIOT noted fundamental legal and accounting differences between elections and NIC agreements, and recommended keeping the elections. We also suggested a simplified process if digitalisation was a problem.