Editorial for Newsletter #318Monday, October 27th, 2008
If you are expecting to use the new, A4-format P45 this month, or file some P45 or P46s on HMRC’s website, you need to read the relevant items in this week’s news. Our Employer FAQ this week also stays with the P45, with a reminder of the need to check the item 7 tax figure for every P45 you receive.
HMRC seems to have gone “back to the drawing board” with it proposals to tax benefits-in-kind through the payroll. Not so the Income Tax Department in Guernsey. Proposals for taxing benefits through ETI (the Guernsey equivalent of PAYE) were made in August, two months ago, and the decision has already been made to introduce direct taxation of benefits-in-kind from January 2009. The procedures are very simple, reflecting a far simpler set of taxation rules for benefits than we have in UK legislation and, to be fair, a much smaller population of employers and employees. It provides a good indication, though, of the need for the government to simplify our P11D and P9D rules before attempting to tax them through the payroll.
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