Archive for May, 2010

Did you know that, in theory, it is possible to provide a part-time employee with a company car without the car being taxed? As you might expect, there are some conditions attached to the arrangement. The key news item covered this week illustrates the way that some small family companies attempt to provide a tax-free company car [...]

When a company car is provided for the private use of a member of an employee’s family or household, the tax charge normally falls on the employee.  Exceptionally, there is no tax liability on the employee in the following situations. The car is provided in the course of normal family relationships and the car is [...]

The European Union (EU) is to update the maternity leave directive to give standard maternity leave rights to self-employed women and the spouses or life partners of self-employed men.   It is common for self-employed workers in farming and small firms and for professional workers to be helped in their jobs by their spouses or partners.  The intention is for any pregnant self-employed woman or self-employed [...]

So, the new date in our diary (other than 7 May 2015, the next General election, maybe) is Tuesday, 22 June, the day when the new coalition government will present its first Budget. What is the second Budget of 2010 likely to include?  There is much media speculation but the only (more-or-less) certain changes were [...]

In a notable decision given on 6 April 2010, the First Tier Tax Tribunal has allowed an appeal, in the case Novasoft Limited v Revenue & Customs, by a one-man IT limited company against HMRC’s claim that a long-term contract should be viewed as employment. Where a company supplies services of a worker to a [...]

On 7 May, the Scottish Agricultural Wages Board published its proposals for new wage rate from October 2010.   The basic rate of pay for agricultural workers with more than 26 weeks continuous employment will increase by 19p per hour to £6.51 bringing the minimum wage for a 39-hour week to £253.89. The proposed hourly rates [...]

Although the government departments have stopped issuing press releases pending the formation of a new government, HMRC has continued to make some announcements, among which is a list of amendments to the invaluable Employment Income Manual. Some of the key changes have been highlighted in this newsletter and the full detail can be examined by following [...]

HMRC has listed a number of changes and additions to the technical Employment Income Manual used by HMRC officers but made available for general use by advisers and employers.  The new and amended pages include the following guidance. Scale rate expenses: A useful Q&A page has been added to explain issues relating to the use [...]

The eBrief on the Income Levy has been updated with some additional FAQs. Further information: Income Levy Sponsored by Learn Payroll

Another quiet week, with just a couple of PAYE procedure matters in the context of international employment and the construction industry. HMRC has published the latest Employer Bulletin and, now that it is an online magazine, it promised to be a much more useful document. And Guernsey has announced its very first minimum wage rates. Sponsored by [...]

UK employers of foreign national employees coming to work in the UK may be paid net cash earnings and non-cash benefits on the basis that the employer undertakes, using modified PAYE arrangements, to meet the UK tax liabilities involved and ensure that the employees’ tax affairs are handled by someone experienced in tax equalisation procedures. [...]

In a news item in March, we explained the changes made by PAYE amendment Regulations to the procedures for identifying “large” employers for the purpose of mandatory electronic payments.  Employers with 250 or more employees are required to make their monthly payments electronically and the requirement to do so has, up to the current tax [...]

The first time Double Taxation Convention between the UK and Libya, which was signed in London in November 2008, entered into force 8 March 2010. In the UK the provisions of the Convention will take effect from 1 April 2010 for Corporation Tax purposes and from 6 April 2010 for Income Tax and Capital Gains [...]

HMRC’s Employer Bulletin has traditionally been sent out to all employers by post.  The April 2010 issue has been released online in a format suited to viewing by computer and the next issue in September will no longer be sent by post.  Employers can register to receive an email alert when each issue becomes available. [...]

The Labour Court has made a new Employment Regulations Order (ERO) fixing the statutory minimum rates of pay and statutory conditions of employment for workers in the scope of the Agricultural Workers Joint Labour Committee (JLC). The ERO sets new rates of pay from 3 May 2010, with further increases from 31 December 2010. Further [...]

The first Regulations to be made under the provisions of the Minimum Wage (Guernsey) Law, 2009 will be the Minimum Wage (Prescribed Rates and Qualifications) (Guernsey) Regulations, 2010. They are currently in draft form and, if approved by the States, will introduce Guernsey’s first minimum wage rates from 1 October 2010. The Regulations make the following proposals: the [...]