Employment Taxes


The CIOT comments send to HMT on Introducing a Pensions Advice Allowance.

The government has proposed to change the tax treatment where certain benefits-in-kind (BIK) are provided through salary sacrifice so that the BIK will be chargeable to income tax and Class 1A employer NICs, even if normally exempt from tax and NICs, at the greater of the amount of salary sacrificed and the cash equivalent of the BIK (as set out in statute).

Introduction – HM Treasury published a consultation document in August 2016 seeking views on the design of company car tax bands for ultra-low emission vehicles (ULEVs) from 2020-21 onwards.

HMRC published a consultation in August 2016 on proposals to ‘simplify’ the process employers’ use for agreeing and reporting items to them through a PAYE Settlement Agreement (PSA).

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.