General Expenses, Benefits & Reward News
Delay on introduction of Trivial Benefit Exemption 25 March 2015
In a last minute update, HMRC has advised that as part of the Parliamentary process, Parliament has decided not to legislate for the new exemption to income tax for trivial BiKs in Finance Bill 2015 and instead will legislate in a future Finance Bill. This will mean that the income tax exemption will not come into force from 6 April 2015 as previously advised. Other changes to benefits and expenses (the abolition of the £8,500 threshold, collection of income tax on BiKs in real time (payrolling) and the paid and reimbursed expenses exemption) will be legislated in Finance Bill 2015, which has been published today. Please follow the link to the Bill for more details.
End of year expenses and benefits forms 1 May 2015
HMRC has published online forms P11D, P9D and P11D9b, for reporting PAYE end-of-year expenses and benefits for 2014 to 2015.
PAYE: end-of-year expenses and benefits (online form)
Employers can use this online form to report end-of-year expenses and benefits to HMRC. It includes forms P11D, P9D and P11D(b).
Annual NHS surcharge is treated as taxable earnings 22 May 2015
The minutes of the Expats Forum held on 4 February have now been published. We also bring you an update on the annual NHS surcharge that some immigrants pay and where the employer pays this fee it is treated as taxable income.
The CIPP are represented at the Joint Forum on Expatriate Tax and National Insurance Contributions by member Valerie Woodland. You can view the minutes of the meeting held on 4 February 2015 on GOV.UK .
Annual NHS charge
You may be aware from 6 April some immigrants to the UK for more than six months who are not EU citizens will be liable to pay an annual NHS surcharge of £200 for themselves and for each family member while they are in the UK, so long as they remain subject to immigration control. This affects Tiers 1, 2 (other than inter-company transfers), 4 & 5. An affected immigrant from outside the EU who applies for a visa for four years must pay £800 for himself and must pay it up-front with his visa fee when he applies to come to the UK.
Further information is available at Pay for UK healthcare as part of your immigration application .
If the employer pays the fee for the inbound foreign employee and his family this will be treated as a taxable employment income and earnings subject to Class 1 NICs where applicable. You will note that the information specifically states that the surcharge is not a VISA. It is a charge related to the individuals presence in the UK rather than their travel to get here. The charge is not a travel facility for the purposes of Section S281, S370, S371, s373 or S374 ITEPA.
No P11D to submit - online tool now available 26 May 2015
If you don’t have any P11Ds to submit to HMRC, you can do it online through GOV.UK.
CIPP Policy News Journal
25/04/2016, Page 138 of 453
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