HMRC has recently been asked to reconsider its view on the treatment of NHS surcharges paid by employers on behalf of employees for tax and NICs purposes.
Because the surcharge must be paid upfront and is part of the VISA process, HMRC has decided that the costs of the NHS surcharge may be attached to the VISA costs and be regarded as a travel facility in the same manner as the airfares, train fares, etc. As such, where the costs can be attributed to a particular journey from overseas to the UK, a deduction will be appropriate for the employee under S370 or S373 ITEPA 2003 and for the accompanying or visiting spouse, civil partner and children under S371 or S374 ITEPA 2003. Similarly such costs are therefore disregarded for both Class 1 and Class 1A NICs. Where however there is no journey for example because the cost relates to an extension to allow the employee to stay in the UK, the costs met by the employer will be general earnings and liable to tax and NICs. The CIPP represent members and the payroll profession at the Joint Forum on Expatriate Tax and National Insurance Contributions and the most recent minutes of the meeting held on 25 August 2015 have been published at GOV.UK. The joint forum is a sub group of the Employment and Payroll Group .
Expat Forum Information - Section 690 applications and renewals 20 November 2015
Employers are encouraged to send Section 690 applications in December, where possible, to ensure that they can be processed before 6 April 2016.
Section 690 and informal treaty directions
Applications made on or after 1 December 2015 may be made for current and for up to 2 of the 2 subsequent years. As such renewal applications for 2017 to 2018 where appropriate, can be made at the same time as those for 2016 to 2017. A suggested format to include in the application letter has been produced to help employers include all relevant information in their applications (please see below).
Employers are encouraged to send applications in December wherever possible to ensure that they are processed before 6 April 2016.
Employers are reminded to send applications for non SPT customers to: Pay As You Earn HM Revenue and Customs BX9 1AS
Applications for SPT customers should be sent to: HMRC Charities Savings & International Operations SO733 PO Box 203
BOOTLE L69 9AP
The PAYE Manual will be updated shortly.
The CIPP represent members and the payroll profession at the Joint Forum on Expatriate Tax and National Insurance Contributions and the most recent minutes of the meeting held on 25 August 2015 have been published at GOV.UK. The joint forum is a sub group of the Employment and Payroll Group .
Expat Forum Information - The Pensions Regulator (TPR) and modified PAYE schemes 20 November 2015
HMRC have circulated an update through the Expat Forum regarding contact from TPR to some individuals in modified PAYE schemes.
“We understand that some individuals in modified PAYE schemes have received letters from The Pensions Regulator regarding auto enrolment.
We have been advised that where a letter is received, if this is not dealt with, The Pensions Regulator will continue to contact employers.
CIPP Policy News Journal
25/04/2016, Page 260 of 453
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