sent a calculation that will be a legally enforceable demand for payment, and taxpayers will be able to challenge and appeal these calculations. This process will come into effect in the 2016-17 tax year (Finance Bill 2016).
‘On or Before’ reporting obligation relaxation will not be renewed from April 2016
The Government has decided not to renew or extend the two year temporary relaxation, which currently allows existing micro-employers using Real-Time PAYE to report all payments they make in a tax month on or before the last payday in the tax month, rather than on or before each and every payday. The current relaxation will draw to an end, as planned, on 5 April 2016.
This will align the treatment for existing micro-employers with all other employers, and follows a review the Government committed to undertake at Autumn Statement 2014, as recommended by the OTS.
Employment intermediaries and tax relief for travel and subsistence
The Summer Budget 2015 announced that the Government would legislate to restrict tax relief for travel and subsistence expenses for workers engaged through an employment intermediary, such as an umbrella company or a personal service company. Following consultation, relief will be restricted for individuals working through personal service companies where the intermediaries legislation applies.
This change will take effect from 6 April 2016
Tax avoidance and evasion
It comes as no surprise that the Government continues to tackle tax avoidance, aggressive planning, evasion, non-compliance and imbalances in the tax system and has announced that there will be £800 million to fund additional work by 2020-21. Measures include: A new criminal offence that removes the need to prove intent for the most serious cases of failing to declare offshore income and gains An increase in civil penalties for deliberate offshore tax evasion, including the introduction of a new penalty linked to the value of the asset on which tax was evaded and increased public naming of tax evaders Introduction of civil penalties for those who enable offshore tax evasion, including public naming of those who have enabled the evasion A new criminal offence for corporates that fail to prevent their agents from criminally facilitating tax evasion by an individual or entity Government consultation on an additional requirement for individuals to correct any past offshore non- compliance with new penalties for failing to do so New tough measures for those who persistently enter into tax avoidance schemes that are defeated by HMRC A new penalty of 60% of tax due to be charged in all cases successfully tackled by the GAAR (General Anti-Abuse Rule) Taking action against those who have used or continue to use disguised remuneration schemes and who have not yet paid their fair share of tax Introducing legislation for a new requirement that large businesses publish their tax strategies as they relate to or affect UK taxation.
Childcare
From September 2017, entitlement to free childcare for working families with three and four year olds will double from 15 hours to 30 hours a week. This coincides with the introduction of Tax-Free Childcare from early 2017, providing up to £2,000 a year per child to help working parents with their childcare costs. The Autumn Statement and Spending Review announced that the upper income limit per parent will be lowered to £100,000 per annum as this is the level at which the personal allowance starts to be withdrawn for individuals. The lower income level per parent will be increased from 8 hours at the relevant National Minimum Wage (NMW) to 16 hours at the National Living Wage (NLW). The Government believes that increasing the minimum income level will help encourage people to work more to access childcare support, whilst still supporting those working part-time.
Apprentices
CIPP Policy News Journal
25/04/2016, Page 172 of 453
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