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Childcare
Childcare Vouchers and the Basic Earnings Assessment 2013/14
Tuesday, March 19th, 2013Following a query on our Forum, we are repeating this article from last year, updated for 2013/14 tax year: As we approach the end of one tax year and the start of another, it is relevant to remind payrollers of their administration task which is the Basic Earnings Assessment (BEA). As you will remember, the [...]
Guidance and FAQs on Employer-Supported Childcare
Thursday, November 3rd, 2011In August, we advised that HMRC had issued revised and updated guidance for employees and employers. This was in the circumstances that employer-supported childcare was directly contracted or provided by way of a voucher scheme. We have been communicating with HMRC regarding the following statement in the employer guidance, page 6, paragraph 3: ‘You must [...]
HMRC guidance on provision of childcare and childcare vouchers
Monday, October 10th, 2011Guidance for employees in booklet IR115 updated. HMRC has updated and reissued booklet IR115 Paying for childcare – getting help from your employer to include the new tax exemption rules for the provision of childcare vouchers. The guidance for employers in Helpbook E18 and in the Employment Income Manual was also updated in September. Further [...]
HMRC guidance on provision of childcare and childcare vouchers
Friday, September 9th, 2011HMRC’s Employment Income Manual has been updated to cover recent statutory changes to the provision of employer-supported childcare. HMRC provides guidance for its own staff on all “employment income” matters in the Employment Income Manual. It is a technical manual and comments on the tax legislation itself. It is published online and is available for [...]
New tax relief rules for employer-supported childcare
Monday, August 8th, 2011HMRC has updated its guidance and FAQs for employers and employees. From 6 April 2011, employees joining salary sacrifice schemes involving childcare vouchers or employer-contracted childcare for the first time are subject to new tax relief rules. The level of relief differs according to the employee’s marginal rate of tax. HMRC has updated its two [...]
P11D Working Sheets, qualifying childcare, tax simplification, NEST, credit card fees, 0T legislated, SMP compensation rate, Worker Registration Scheme, P60s, and so many forum questions.
Friday, March 18th, 2011This week we are back to normal with (too) many news items. Of particular interest and importance are the two reports from the Office of Tax Simplification, which resurrect a number of proposals from earlier years, some of which may well find their way into the coming Budget. The PAYE Regulations have been updated with [...]
Further changes to the definition of ‘qualifying child care’
Friday, March 18th, 2011Sections 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 [...]
Applying for flexible working
Thursday, January 13th, 2011The Department for Business, Innovation and Skills (BIS) has updated the draft letter that employees may use to apply to their employer for flexible working. It clarifies that, from 6 April 2011, employees with caring responsibility for a child aged 17 may also apply. Employers are helped if they provide this form to employees who [...]
Consultation on draft legislation for Finance Bill 2011
Friday, December 17th, 2010The policy of the Coalition government is to confirm most of its new tax measures at least three months before the introduction of a Finance Bill. The draft text of the legislation that will appear in the Finance Bill 2011 was published on 9 December and is open for technical comment until 9 February 2011. [...]
Questions From Our Forum 17/12/10
Friday, December 17th, 2010Personal mileage costs in Company Car Some of our employees who have a Company Car have been provided with a company credit card to pay for their fuel. This means that they are using the fuel for business and private use. How do we make the employee pay for their private usage? I have suggested [...]
Questions From Our Forum 10/12/10
Friday, December 10th, 2010The following questions have been posted over the past week. Can you contribute to any of the discussions?… Holiday pay – Self employed I am from Romania and because of this I have the right to work in UK just being self employed. According to this statute I have very few right excluding holyday paid. [...]
Further guidance from HMRC on tax relief restrictions on employer-supported childcare
Thursday, November 4th, 2010The following notes appeared originally in a newsletter in March 2010. They have been updated in line with newly published HMRC guidance for employers and employees. In September 2009, the Prime Minister, Gordon Brown, announced that the tax exemption for childcare vouchers would be phased out from 2011. Following widespread dissent, this decision was reversed [...]
Coalition Government Budget 2010 – Second Finance Bill published
Monday, July 19th, 2010The Government has published draft legislation for a further Finance Bill that will be introduced to Parliament in the autumn. The Bill consists mainly of technical tax measures inherited from the previous government and the purpose of publishing the details now is to obtain comments on whether or not the legislation will work as intended. [...]
Coalition Government Budget 2010 – Finance Bill published
Tuesday, July 13th, 2010The Finance Bill has commenced its Parliamentary stages. The provisions announced in the June 2010 Budget that are of payroll relevance in the Bill are explained below. References to the “Finance Act 2010” are to the Act that gave effect to the Labour government’s March 2010 Budget. The Coalition government’s Finance Bill, when enacted, will [...]
Salary Sacrifice Schemes – Employer-supported childcare
Thursday, April 1st, 2010In December 2009, HMRC published guidance for employers about two tax exemptions and their use in conjunction with salary sacrifice schemes. One of the statutory conditions for the provision of cycles and cyclists’ safety equipment and of financial support for public bus services is that they must be made available generally to employees of the [...]
Employer-supported Childcare – Details of tax relief changes announced
Wednesday, March 10th, 2010In September 2009, the Prime Minister, Gordon Brown, announced that the tax exemption for childcare vouchers would be phased out from 2011. Following widespread dissent, this decision was reversed in December 2009 and, instead, it was announced that, still from April 2011, the tax relief on childcare vouchers would be restricted to the basic rate [...]
HMRC Guidance – Newly updated publications
Friday, January 15th, 2010The following publications have been updated and reissued: Using you own vehicle for work – Information for employees IR115 – Paying for Childcare – Getting Help From Your Employer E18(2009) – Employer Helpbook – How to help your employees with childcare CSL2 – The Collection of Student Loans – Common querie Sponsored by Learn Payroll
Childcare Vouchers – Tax exemption to be retained
Wednesday, December 23rd, 2009In September 2009, the Prime Minister, Gordon Brown, announced plans to extend free childcare place, funded by removing the tax relief on the provision by employers of childcare vouchers. Details were promised in the 2009 Pre-Budget Report. However, a few days before the 2009 Pre-Budget Report, in a letter sent to two MPs on 4 [...]
Expenses and Benefits – Cycle-to-Work Schemes
Wednesday, December 23rd, 2009Section 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” [...]
Income Tax Exemptions – Guidance on implementing a cycle-to-work scheme
Wednesday, November 11th, 2009Section 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” [...]
