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2011 budget
Budget special, exploring the payroll implications
The Chancellor presented his annual Budget to Parliament on 23 March so this week’s newsletter explains those announcements that are relevant to payroll. The Budget did not contain many surprises, although the plan to consult on merging PAYE tax and NICs would have been unexpected had not the Office of Tax Simplification published their recommendations [...]
Budget – Personal tax allowances
From April 2011, the under-65 personal allowance increases from £6,475 to £7,475 as the first stage of the Government’s plans to increase the allowance to £10,000 before the end of the current Parliament. From April 2012, the personal allowance will increase by a further £630 to £8,105. However, as in April 2011, the basic rate [...]
Budget – Implementing the Office of Tax Simplification’s proposals
Last week’s newsletter included a review of two reports issued by the Office of Tax Simplification in time for consideration by the Chancellor for his Budget announcements on 23 March. A number of the recommendations found their way into the Budget, as follows. Of the various tax reliefs considered by the OTS, 43 are to [...]
Budget – State Pension reform
The Government’s view is that the state pension system is too complex, making it difficult for working-age individuals to determine what they might receive from the state, in particular from the State Second Pension. The Budget announcement is that the DWP is to publish a Green Paper to consult on options for reform, which will [...]
Budget – Mileage allowance payments
For employees required to use their own car or van for work, the approved mileage rate for cars and vans will increase, from April 2011, to 45p per mile (up from 40p) for the first 10,000 miles in a tax year, and 25p per mile thereafter. For NICs purposes, the new limit is 45p per [...]
Budget – Company cars and vans
Appropriate percentage: For 2011/12, the appropriate percentages for company petrol cars range from 15% to 35% for emission ratings of 125 to 225 g/km. For 2012/13, the range, as already announced, will widen to between 11% and 35% for emission ratings of 100 to 220 g/km, with a fixed 10% for emission ratings below 100 [...]
Budget – Employer-supported childcare
The “generally-available” condition One of the statutory conditions for tax relief for employer-supported childcare is that it be made “generally available” to all of an employer’s employees. Employer-supported childcare refers to the provision of childcare under a contract between the employer and the childcare provider, and to the provision of childcare vouchers. Budget 2010 announced [...]
Budget – Anti tax avoidance measures
A number of measures are to be included in the 2011 and later Finance Bills to prevent the use of certain tax avoidance schemes. However, the Government has announced that measures will also be included in the 2012 Finance Bill to deter the continued use of avoidance schemes that are believed not to deliver the [...]
Ireland: 2011 Budget and the Universal Social Charge
Ireland’s 2001 Budget measures, presented by the Minister for Finance on 7 December, include significant changes to taxation in employment. The key changes involve: replacing the Income Levy and Health Levy with a single Universal Social Charge removing the PRSI employee contribution ceiling increasing the PRSI rate for the self-employed, higher earning public servants and [...]
