All posts by Nicholas Stretch, Tax Partner, CMS

There was good news today for those that feared that the Government might use the Budget to announce proposals to reverse all the tax advantages of personal service companies. The Government is merely to consult on the tax treatment of workers using service companies to provide services to the private sector. The tax savings which come … Continue reading Workers using service companies and in the gig economy – further consultations

Participants in Sharesave (or SAYE) plans who are on parental leave will from April 2018 be able to miss up to twelve months savings as opposed to just six months savings, which is the current position. Employees save monthly over a three or five year period before they can exercise their option and receive shares. … Continue reading Sharesave plans – good news for those on parental leave

HMRC has recently publicly confirmed that if an employee has given an indemnity for PAYE tax on shares, this stops a further tax charge arising on any underpaid PAYE. Underpaid PAYE on shares can arise in a number of cases. The value of shares may have been incorrected estimated or a share plan or EMI … Continue reading Unpaid PAYE on employee shares – HMRC confirm an additional tax charge should not arise if there was an indemnity in place

In the Autumn Statement, the Government confirmed that it would remove the tax advantages of salary sacrifice for arrangements put in place after April 2017.  Certain benefits provided through salary sacrifice (accommodation, cars and school fees) will  be protected until 2021 and other benefits can still benefit from tax savings indefinitely (pensions, cycles, childcare, certain … Continue reading Salary sacrifice draft legislation now published

The ability to offer tax-favoured employee shareholder shares or ESS, until recently very common in private equity company arrangements, has been withdrawn with almost immediate effect. The only ESS arrangements that can now be completed are those where the independent advice has been given in which case the relevant employee shareholder agreement must be entered … Continue reading No more ESS arrangements possible

From April 2017, new benefits in kind provided as part of salary sacrifice arrangements will be subject to income tax and NICs as if they were paid as salary, thus removing the tax and NICs benefits of many benefit packages. A number of arrangements will not be caught, however, and arrangements already in place will be … Continue reading Salary sacrifice – bad news but at least existing arrangements are protected