The Pensions Act 2011 required that Government annually reviews the auto-enrolment Earnings Trigger and Lower and Uppers bands of Qualifying Earnings. This ensures that the auto-enrolment process continues one of its objectives of targeting the lower-paid, whilst ensuring that as many people as possible are saving for their retirement. Also, the annual review ensures that [...]
VAT has been charged on takeaway food for more than 20 years. However, ‘some new hot takeaway products’ are not being charged, most commonly from supermarkets and bakeries. They argue that foods like pies and rotisserie chickens are not sold to be eaten immediately, therefore, fall outside of the scope of VAT. The Chancellor is [...]
As we reported on 13 March 2012, The Office of Tax Simplification had previously identified the age-related allowances as a source of confusion and complexity. Further, the Coalition’s increases to the lower Personal allowance were reducing the difference between the lower and age-related amounts. In a move towards a universal tax allowance system, one of [...]
As we reported last week after the Budget, it was little surprise that an announcement was made about the ‘temporary’ Additional rate. From April 2013, The Additional rate will reduce from 50p in the pound to 45p. Mr Osborne claimed that ‘no chancellor can justify a tax rate that damages our economy and raises next [...]
The Income Tax (Indexation) Order 2011 in the Finance Bill 2012 already provides for the Personal Allowances to increase from the start of tax year 2012/13, at which point L suffix codes increase by 63 points and the Emergency tax code becomes 810L. This was confirmed in the Autumn Statement of 2011 and is not [...]
The Budget delivered today must feature as one of the worst kept secrets in the history of Budgets, with so much seeming to have been talked about beforehand with what appeared to be leaks from different Government Departments. Listening to the delivery of the Budget on the radio, the biggest laugh from all MPs came [...]
Employer provided cars There are quite a few changes in the taxation of employer provided cars and the fuel benefit which applies if an employee does not pay for all of their private motoring. The car benefit charge incurred by employees who have an employer provided car is based on the list price of the [...]
The Government announced in Budget 2011 that it would consult on the options, stages and timing of reforms to integrate the operation of income tax and NICs. Since then, the Government has issued a call for evidence, published a response and set out an indicative timetable for reform in Integrating the operation of income tax [...]
The Finance Bill 2012 will include measures that imposes a new charge on a taxpayer who has adjusted net income over £50,000 in a tax year, where either they, or their partner, is in receipt of Child Benefit for the year with effect from 2013/14 if both partners have adjusted net income over £50,000, the [...]
In 2011, we saw an HMRC consultation about extending the “hallmarks” (the descriptions of schemes required to be disclosed for income tax, capital gains tax or corporation tax). The Government have announced that they will be formally consulting over the summer on extending the hallmarks so as to capture avoidance schemes that do not currently [...]
The Government is bringing forward a package of measures to tighten up on avoidance through the use of personal service companies and to make the existing IR35 legislation easier to understand. This will include HMRC strengthening specialist compliance teams, simplifying the way IR35 is administered, and consulting on proposals which would require office holders/controlling persons [...]
Following consultation in June 2011, the Government intends to introduce a new power in the Finance Bill 2013 to increase the value of fixed penalties in line with inflation. In addition, a small number of defunct penalties will be repealed. The Government has decided that the benefits of simplifying regulatory penalties are not sufficient to [...]
The Government have formerly announced that the Statutory Residence Test would be legislated in Finance Bill 2013 and take effect from 6 April 2013, to allow further time to finalise the detail of the test. This is long awaited and will, hopefully, assist employers to avoid uncertainty following the long running saga of Robert Gaines-Cooper.
The Government will be considering the recommendations of the Office of Tax Simplification’s review of tax advantaged share schemes, and will consult shortly on how to take a number of these proposals forward. Legislation will be in future finance bills.
Legislation will be introduced in Finance Bill 2013 to amend the rules which currently allow employers to pay pension contributions into their employees’ family members’ pensions as part of their employees’ remuneration package to remove the tax and NICs advantages from these arrangements. A regulation making power will also be introduced to allow changes to [...]