Employment Taxes

 


The CIOT has responded to the ‘Simplification of the tax and National Insurance treatment of termination payments: consultation on draft legislation’ consultation that followed from the government’s Budget 2016 announcement that (i) the £30,000 exemption would be retained but that employer’s NIC would be payable on amounts above this, (ii) all ‘payments in lieu of notice’ (PILONs) would be taxable (whether contractual or non-contractual) and (iii) relief will be removed from payments in connection with foreign service.

The CIOT has responded to HM Revenue & Customs’ (HMRC) technical consultation entitled “Tackling disguised remuneration”. 

The CIOT has responded to the consultation on aligning the dates by which benefits-in-kind provided to an employee by an employer (or third party) must be ‘made good’ in order to reduce (usually to nil) the value of the benefit-in-kind subject to tax and NICs.

The CIOT comments sent to HMRC 18 August 2016 on Off-payroll working in the public sector: reform of the intermediaries legislation.

The LITRG is urging workers to consider their relationship with umbrella companies carefully, especially as a key advantage of using such companies has now been shut.

The CIOT comment sent to HMRC 14 July 2016 on Employee Share Schemes: NIC elections.

Clause 7 of the Finance Bill 2016 reverses the decision in HMRC v Apollo Fuels, B Edwards and others [2016] EWCA Civ 157 (17 March 2016). In the Apollo Fuels case the Court of Appeal found that the lease of a car to an employee who paid lease charges at full market value was not a taxable benefit.

HMRC provide a communications document on PAYE Penalties.

Buoyed by HMRC’s recent victory in the Court of Session against Glasgow Rangers’, the Chancellor of the Exchequer struck a further blow against Employee Benefit Trusts (EBTs) in his March Budget.  Amongst a number of anti-avoidance measures, he announced that legacy loans to employees and former employees made by EBTs before the Finance Act 2011 rules on ‘disguised remuneration’ came into play will now be judged offside and subject to a new PAYE (and NIC) charge if still outstanding on 5 April 2019. 

 

The Apprenticeship Levy was announced at Summer Budget 2015 and will be introduced from 6 April 2017. The Levy will be charged at a rate of 0.5% of an employer's total pay bill for Class 1 NIC purposes. Each employer will receive an allowance of £15,000 to offset against their Levy payment, the intention being that the Levy will only be payable on pay bills in excess of £3 million a year.