Archive for December, 2011

The Learn Centre’s 2012 Payroll, HR & Managing People Conference is only a few weeks away and the organisers are busy promoting their “early bird” saving before it expires at the end of December. This will be the 18th Annual Conference in the series and the 2012 event will host an industry leading roster of [...]

The announcement last week of the statutory rates for 2012, I felt, was a fitting end to my payroll year for 2011.  We now seem to have all the things that we need to process payrolls for next year – we know what the tax is going to be, NICs, Student Loans and now Statutory [...]

HMRC have announced the statutory payment amounts that will apply for 2012/13.  As we have already advised, the LEL for next tax year is £107.00 per week: Statutory Sick Pay (SSP) The weekly rate of SSP has increased by 5.2% to £85.85 from 06 April 2012.  This equates to an increase that is equivalent to [...]

The Government’s intention is to increase the repayment threshold from £15,000 to £21,000 in April 2016, the date when most students who commence a three-year degree course in September 2012 will first become liable to make repayments.   Although we have mentioned this before in our Newsletter, Regulations are now in force which: Increase the Student [...]

R v HM Commissioners of Inland Revenue ex p Wilkinson was a House of Lords decision in 2005 that has become known as ‘the Wilkinson case’.  In short, the case concerned the powers that HMRC have in establishing Extra-Statutory Concessions (ESCs).  ESCs have been around for many decades and are described by HMRC as ‘a [...]

Last week, we started to address the issue of actually what data will be included in the RTI submission that we will be required to send.  With most of the other questions either answered or being addressed, this seemed to be the final piece of the puzzle.  The Data Improvement Project (DIP) had been started [...]

The following is a selection of questions that have been posted to our Forum over the past week.  Can you contribute to any of the discussions?…………. Employer recovering credit card payment from employee exclusive of VAT – Is this a benefit and should it be reported on P11D? The employer pays a credit card fee [...]

I am not so sure that I like this getting older business.  I am supposed to be getting wiser and more balanced in my thinking.  Nothing could have been further from the truth last week when I watched a news bulletin, stating that the art of text messaging had turned 19 years-old.  Apparently, in such [...]

06 December saw the Government make available some draft legislation and updates that will be included in the Finance Bill 2012.  This is all issued as part of a consultation process and comments on the proposals can be submitted until February 2012.  Publishing the draft legislation at this early stage fulfils Government’s commitment to make [...]

We mentioned this in our previous Newsletters; therefore, refer to the draft legislation that will introduce it from April 2012.  This is the scheme that will enable 50% tax relief for anyone investing up to £100,000.00 in a new business, capped at £100,000.00 for individuals. Associated with the theme of investment in companies, there is [...]

In the 2011 Budget, the Government announced that it would introduce a statutory definition of tax residence, which led to a consultation.  We were expecting the introduction of a Statutory Residency Test from April 2012 to be included in The Finance Bill 2012.  However, a Ministerial Statement issued 06 December 2011 advised that a number [...]

Effective 06 April 2011, where a company car was made available for private use, the £80,000.00 cap was removed for benefit calculations – i.e. the list price plus accessories is no longer capped at £80,000.00.  This will impact our P11D reporting for the tax year 2011/12 in July 2012.  However, the term accessories made no [...]

Legislation will be introduced to give effect to the agreement between the UK and Switzerland about co-operation in tax matters that was signed on 6 October 2011. It is anticipated that the agreement will take effect from 1 January 2013. The measure also provides that the fact that arrangements with a territory contain significant protection [...]

It is worthwhile devoting a section specifically to the consultation which has resulted in some changes to tax and NICs reliefs which may be enjoyed by employees and employers alike. The Government abolished seven reliefs in The Finance Act 2011 and outlined its intention to abolish thirty six others in the Finance Bill 2012.  This [...]

In normal circumstances, the provision of a meal by employer to employee at the end of home to work travel would give rise to a taxable benefit.  However, where the employer provides this on a designated ‘cycle to work’ day, these can be provided without any P11D reporting requirements.  This was intended to encourage take-up [...]

Regulation 145(3) of the Social Security (Contributions) Regulations 2001 provides an exemption from Class 1 NICs for the first 52 weeks of employment for an employee who is not ordinarily resident in the UK in the following circumstances: Student Exemption – where the UK employment occurs during a vacation from a course of full time [...]

As part of the same review which has abolished the relief on Luncheon Vouchers, Government has recommended that the exemption for the use of late night taxis be maintained.  This is the relief which allows employers to pay for a taxi for employees without a consideration for tax and NICs, in the following circumstances: the [...]

The Post Office is taking part in an initiative exploring how their role can be developed in delivering front end services on behalf of Government.  In a cross-Department initiative with the DWP, three trials are taking place:  Rural Signing  Document Verification (for pension claims) and  National Insurance Number Allocation The NINO allocation will take place [...]

The Luncheon Voucher relief (introduced in 1946 at the time of food rationing, with the intention of helping individuals afford meals) gave tax and NICs relief on the first 15p per working day, where a voucher was provided by employer to employee. For the sake of interest only, the following will be repealed in order [...]

The deadline for the submission of paper Tax Returns for 2010/11 tax year passed on 31 October 2011.  Any remaining Self-Assessment Returns must now be filed online by 31 January 2012 to avoid penalties, together with any tax due. HMRC have issued a Press Statement reminding taxpayers to ensure that they have registered to use [...]