All posts with the topic: employee incentives

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employee shareholder shares or ESS, until recently very common in private equity company arrangements, has been withdrawn with almost immediate effect.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

In a surprise move in today’s Budget, the Chancellor has slashed the rate of capital gains tax from 28% to 20% (or, for basic rate taxpayers, from 18% to 10%).  These changes come into effect from 6 April 2016.  This will be great news for any employee holding shares in their employer company and, in … Continue reading Employee Share Incentives: a sprinkling of sugar but a cap on ESS

As the deadline for filing annual returns for employee share plans approaches (6 July 2015), it’s worth remembering that this year is different. This is the first year in which companies need to both register their plans and file annual returns online via the Employment Related Securities section of the PAYE Online portal as HMRC’s … Continue reading Employee Share Plans and Annual Returns: This Year it’s Different

Although the 2015 Budget contained no new announcements that will materially impact Employee Incentives arrangements, it is worth highlighting some of the legislative changes previously announced that will soon be enacted, or which are now becoming particularly relevant. If you have any questions in relation to anything below, or Employee Incentives generally, please contact our Employee … Continue reading Employee Incentives: incoming changes

The most common response to today’s announcements regarding the increase in the current statutory threshold in relation to cheap employer loans from £5,000 to £10,000 must surely be – finally! The legislation currently provides that employers may make cheap loans to employees (i.e. loans without interest or where interest is due at less than the … Continue reading Bringing employee loans into the 21st century

Under the Government’s proposed initiative to introduce an “employee shareholder” status, employee shareholders will relinquish certain statutory employment rights in return for shares in their employer company on the basis that any future gains on those shares will be exempt from UK capital gains tax. In a previous update we highlighted some key areas of … Continue reading Employee shareholder proposals? Still not convinced

Under the Government’s proposed initiative to introduce the “employee shareholder” status, employee shareholders will relinquish certain statutory employment rights in return for shares in their employer company on the basis that any future gains on those shares will be exempt from UK capital gains tax. With the legislation implementing the new status expected to come … Continue reading Employee shareholders – just another tax break for senior executives?