All posts with the topic: employment tax

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

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

Draft legislation has been published intended to “clarify” that companies can only claim CT relief in respect of shares acquired by employees (eg. through share options) if available under Part 12 CTA 2009; relief cannot also or instead be claimed under general accounting principles which require companies to recognise a fair value accounting expense in respect of … Continue reading Deductions for employee share acquisitions

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

The use of service partnerships has become increasingly common, particularly where the variable pay component is high. Such arrangements typically give rise to NICs advantages, also they side-step certain difficulties that might otherwise be encountered in the context of income tax as it applies to employees. The press release refers to the “disguising of employment relationships”. Hopefully, this … Continue reading Partnerships and LLPs – further thoughts

Partnerships and LLPs are well established structures for investment funds and business services, popular due to their flexibility and tax transparency.  However, the Government is concerned that this flexibility has been abused for tax avoidance purposes and has announced that it will consult on measures to: remove the presumption of self-employment for LLP partners to … Continue reading Partnerships and LLPs – trouble ahead?

As ever, pages of documents have been published backing up the Chancellor’s Budget speech made earlier today.  We are analysing these and will soon be blogging more in depth analysis but in the meantime here are some headline changes: Corporation tax rate to be 20% from April 2015 – this will match the small profits … Continue reading The headline changes….more to come

The Government announced over the weekend that it will strengthen legislation to block tax avoidance involving offshore employment intermediaries.  The Government estimates that at least 100,000 workers are being employed through offshore intermediaries to avoid tax, in particular National Insurance contributions (NICs). While this is in keeping with the Government’s current drive against tax avoidance generally, and … Continue reading Pre-budget anti-avoidance announcement – offshore employment intermediaries