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HM Treasury
Government Responds to Review of Pensioner Taxation
In 2011, HM Treasury asked the Office of Tax Simplification (OTS) to look at simplifying the system for the estimated 5.6 million people of pensionable age who pay tax. In March 2012, the OTS published the first stage of their review and identified a number of issues for further review and consideration: Simplification of the [...]
The Married Couple’s Allowance
Given the recent speculation and reports in various sections of the media, it is worthwhile having a look at the Married Couple’s Allowance. Independent taxation was introduced in 1990, reversing a centuries-old principle that a married woman’s income was part of her husband’s and should be taxed as such. The Married Man’s Allowance (MMA) was [...]
Consultation on Payroll Giving
Payroll Giving was introduced in 1987 as a way of providing a tax-efficient means of donating to charity. Currently, donations reduce taxable pay, meaning that a £1 donation by a Basic rate taxpayer will actually only cost them 80p after the application of tax relief. In 2012, HM Treasury announced that the topic of Payroll [...]
OTS Final Report on Review of Pensioner Taxation
On 11 July 2011, HM Treasury asked the Office of Tax Simplification (OTS) to look at simplifying the system for the estimated 5.6 million people of pensionable age who pay tax. Specifically, the remit was to identify the parts of the tax system that caused the greatest difficulty, especially where pensions are received from multiple [...]
OTS to Launch Review of Expenses and Benefits
Point 2.96 of the Autumn Statement report indicated that the Government was to ask the Office of Tax Simplification (OTS) to review ways in which the benefits and expenses taxation system and employee termination payments process can be simplified. This project is envisioned to be in three stages: A fact-finding exercise aimed at identifying the [...]
Income Tax (Indexation) Order 2012
Sections 21 and 57 of the Income Tax Act 2007 requires the Treasury to increase tax allowances and limits automatically each year if the Retail Price Index (RPI) for the September before the start of a tax year is higher than it was for the previous September. This affects: The Personal Allowance for people born [...]
Draft Finance Bill 2013
The Government is committed to providing information on the measures in the Finance Bill at least three months prior to its introduction in Parliament and, where possible, the associated draft legislation. As such, HM Treasury have published their ‘Overview of Legislation in Draft’ (OLD) document together with Tax Information and Impact Note (TIIN) and Explanatory [...]
Tackling Tax Avoidance and Evasion
On 03 December 2012, ahead of the Chancellor’s Autumn Statement on 06 December 2012, HMRC’s Website announced that the Government would introduce new rules and HMRC would receive increased investment to tackle the ‘small minority’ who do not pay the tax that they are due to pay. In HMRC’s leaflet ‘Closing in on Tax Evasion’, [...]
HMRC Responds to Office of Tax Simplification’s Review of Pensioner Taxation
On 11 July 2011, HM Treasury asked the Office of Tax Simplification (OTS) to look at simplifying the system for the estimated 5.6 million people of pensionable age who pay tax. Specifically, the remit was to identify the parts of the tax system that caused the greatest difficulty, especially where pensions are received from multiple [...]
Business Calls for Tax and NICs Reform
At Budget 2011, the Chancellor of the Exchequer announced that a Government aim was to look at simplification of the tax system. This led to a ‘Call for Evidence’ document, which was followed by a ‘Next Steps’ document in November 2011, following a recommendation from the Office of Tax Simplification (OTS) in their Small Business [...]
Income Tax Devolution for Wales
Currently, the devolved government administration to the Welsh Assembly means that Assembly Members (AMs) can set legislation and direct the way that money is spent in the Principality, however, they do not have powers to set the necessary revenue-generating income tax. Welsh Assembly funds come in the form of an annual payment from HM Treasury. [...]
Kurzarbeit for the UK?
HM Treasury Ministers are reported to be considering introducing European-style ‘mini-jobs’ as part of labour reforms, designed to create employment and boost the economy. This system allows employees to have flexible mini contracts, allowing them to earn up to €400 per month free of tax (about £315.00). The employer pays reduced employment taxes (National Insurance) [...]
Scotland and Independence – UPDATE
To conclude a Scotland topic in the Newsletter it is relevant to point out that Danny Alexander, Chief Secretary, HM Treasury and MP for Inverness, Nairn, Badenoch and Strathspey has written that, as at 19 June 2012, the Treasury has not had any correspondence with the Scottish Government on the consequences of Scotland leaving the [...]
Statutory Residence Test
At Budget 2011, the Government announced that it would be introducing a statutory definition of UK tax residence. A consultation followed with the expectation that a Statutory Residence Test would be included in the Finance Bill 2012 and effective 06 April 2012. This would provide clear and concise rules on this complex and confusing area of [...]
P11Ds – Cars and Security Enhancements
Effective 06 April 2011, the £80,000 cap on the List Price and accessories of the company car was removed. Some unintended victims of the removal of this cap are employees who, by reason of the nature of their employment, are provided with cars with added security enhancements / accessories. The Government considered that removal of [...]
Tax and NICs Integration
In the Budget 2012 Report, HM Treasury announced that its ‘simplification’ process would continue, as they looked at integrating tax and National Insurance. This would build on the announcement at Budget 2011, plus work that had already been undertaken by its stakeholders. The Report promised that a consultation would be issued in April 2012, however, [...]
From George to Lin – HMRC Objectives for 2012/13
In a friendly letter to HMRC’s new Chief Executive Lin Homer, the Chancellor George Osborne outlines the remit for her department in 2012/13. These are: Improving Tax Collection Chief objective (‘priority’) for Ms Homer is the requirement to maximise revenue in 12/13 in the sum of at least £17 billion. This will be, primarily, by [...]
OTS – Review of Tax Advantaged Employee Share Schemes
On 06 March 2012, the OTS (Office of Tax Simplification) put forward its recommendations to the Chancellor of the Exchequer ahead of his Budget and issued its final report on tax advantaged share schemes (TASS). There are four types of TASS: Company Share Option Plans (CSOP) These are HMRC-approved schemes where an employer may grant [...]
Taxation and Pensioners
On 14 June 2011, the OTS wrote to David Gauke, Exchequer Secretary to the Treasury, outlining proposals for further simplification reviews. In addition to the proposal to review small business taxation was the request to focus on the taxation of pensioners, simplifying the system for the estimated 5.6 million people of pensionable age who pay [...]
Nick Clegg in ‘Further and Faster’ Call on Tax Thresholds
The Coalition Government announced in the June 2010 Budget that its long-term policy objective was to raise the personal allowance to £10,000 for individuals under the age of 65. The intention was for this to be completed by the end of their five-year term of government. However, HM Treasury confirmed in the Autumn Statement 2011 [...]
