Client notification obligations ‚ section 50 of Finance (No. 2) Act 2015

6 Jul 2017

.In its response, the CIOT raised concerns that the Levy will not work fairly for ‚ connected companies‚ where their combined pay bills do not exceed £3 million. This is because, as drafted, the legislation does not provide for any unused levy allowance to be transferred to another group company.

The CIOT also recommended that government reconsider the proposed approach to claiming the levy allowance. The envisaged approach, as we understand it, of only allowing 1/12th of the allowance per month could well result in in-year over-payments being made to HMRC, which will subsequently need to be repaid to the employer. We therefore suggest permitting the levy allowance to be claimed in full upfront by an employer.

The full CIOT submission can be found here.

Technical Team