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In November 2008, HMRC announced new “averaging” arrangements that may be used by employers in the motor industry when calculating the reportable value of cars that are changed very frequently. The procedure involves determining the average price and emission level ratings for cars available in each car group at each location. A number of simplifications were later introduced from the start of the 2009/10 tax.
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Posted November 18th, 2009 | No Comments »
The Advisory Fuel Rates are reviewed every six months and new rates will be effective from 1 January 2010. They are expected to be announced in late November.
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Posted November 18th, 2009 | No Comments »
Section 244 of the Income Tax (Earnings and Pensions) Act 2003 provides exemption from income tax on the provision of a cycle or cyclist’s safety equipment, irrespective of how it is provided, as long as the specified conditions are met. The exemption, which also applies to National Insurance contributions, has prompted the creation of “cycle-to-work” schemes, often as part of salary sacrifice arrangements. Employees sacrifice part of their salary in return for the loan of a cycle, making it possible for such schemes to be self-financing. As with childcare vouchers, employers generally use commercially-available schemes to provide this benefit.
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Posted November 11th, 2009 | No Comments »
Sections 270A and 318A of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) provide limited tax exemptions for the provision of childcare vouchers and employer-supported childcare. One of the conditions that must be met in order for these exemptions to apply is that the childcare must be “qualifying child care”. The definitions of “qualifying child care” are complex and are different for each country of the UK. Equivalent definitions are also used to determine entitlement to tax credits.
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Posted November 4th, 2009 | No Comments »
At the Labour Conference, the Prime Minister, Gordon Brown, announced: Continue reading
Posted October 8th, 2009 | No Comments »
A wide range of changes have been made to HMRC’s Employment Income Manual. The Manual is written principally for the benefit of tax officers but is also published on the Internet for the benefit of advisers and employers. Most of the changes simply reflect statutory and other adjustments that have already been announced over recent months. Some of the important changes in the context of payroll are summarised below, with links to the new text. Continue reading
Posted August 19th, 2009 | No Comments »
HMRC has launched a new A to Z of expenses and benefits, providing basic guidance to help employers check the tax, NICs and reporting requirements for each type of expense or benefit. Bookmarks to the previous guidance pages should, in most cases, redirect the user to the new page.
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Posted July 29th, 2009 | No Comments »
As announced in the 2009 Budget, the calculation of the car benefit charge is to be simplified considerably from April 2011. There are currently eight different types of car, each with its own code letter for use on form P46(Car). These will be reduced to three when the changes are implemented.
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Posted July 15th, 2009 | No Comments »
The limited tax/NICs exemption for the provision of employer-supported childcare and childcare vouchers (i.e. cost to the employer of up to £55 per week) depends on, among other conditions, whether or not the childcare is “qualifying child care”. The definition of “qualifying child care” is complex and differs for each part of the UK.
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Posted July 1st, 2009 | No Comments »
HMRC is continuing to gather information about the tax and NICs issues raised by the proposals to process the provision of benefits-in-kind through the payroll rather than by P11D/P9D reporting.
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Posted June 17th, 2009 | No Comments »
