receive earnings in return for tax free expenses payments, or where the level of their earnings is dependent upon the amount of any expenses payment.
After 5 April 2016 any expenses payments paid to employees under a salary sacrifice arrangement will need to be paid after deduction of tax and NICs. Employees who have suffered tax on these payments will still be able to claim a deduction from HMRC in the normal manner. CIPP comment This is the type of information the Policy Team post on the Policy hub Specialist Interest Group (SIG). The CIPP recently relaunched the SIGs and members will need to update their SIGs to be alerted to items posted on the Policy hub or any other chosen SIG. To ensure you don’t miss any updates see our news item for full details on the changes.
The deadline for submission of completed P11Ds has now passed 8 July 2015
HMRC are reporting that a lower than usual number of completed P11Ds and P11D(b)s have been submitted before the deadline of 6 July.
If you have completed P11Ds for your employees but have not yet submitted them to HMRC please ensure you do so as quickly as possible to limit any penalties you may incur and to ensure your employees’ tax codes can be updated.
Draft legislation: review of employee benefits and expenses 9 July 2015
The regulations that set out the statutory framework for payrolling Benefits in Kind (BiKs) have been extended to include all BiKs other than accommodation, beneficial loans and credit tokens and vouchers. Additional reporting requirements for employers payrolling cars will be introduced from April 2017. Finance Act 2015 included a package of measures that, from the start of the 2016-17 tax year, will give effect to a number of recommendations made by the Office of Tax Simplification (OTS) in its 2014 Report "Review of employee benefits and expenses: second report". The measures were: the abolition of the £8,500 threshold for benefits in kind; allowing employers to voluntarily report and deduct tax on benefits in kind in real time (known as 'payrolling'); introducing an exemption for qualifying business expenses. The Income Tax (Pay As You Earn) (Amendment No *) Regulations 2016 remove the requirement for employers to make end of year returns on forms P9D: The Income Tax (Pay As you Earn) (Amendment No *) Regulations 2016 allow authorised employers to payroll many benefits in kind and removes the requirement for such employers to make annual returns for each employee they provide a benefit to; The Income Tax (Approved Expenses) Regulations 2016 set out the approved rates that employers can use under the new exemption for qualifying business expenses, without the need to contact HMRC for approval; The Income Tax (Pay As You Earn) (Amendment No *) Regulations 2016 remove the requirement for employers to report expenses paid to employees (whether deductible or not) on form P11D at the end of the tax year. To deliver the details of these changes, a number of Regulations are required:
HMRC has published draft regulations , together with draft Explanatory Memorandum, for a period of technical consultation that will close on 2 September 2015.
CIPP Policy News Journal
25/04/2016, Page 141 of 453
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