consider the responses and will consult further with interested groups and wider stakeholders over the coming months in order to better understand the use of the concession and the impacts of its withdrawal.
HMRC will also consider any mitigation options, particularly for affected groups, before a final decision is taken on whether to continue with the proposed withdrawal of this concession.
Tax Treatment of Income from Sporting Testimonials 17 August 2015
There is no specific income tax legislation that covers sporting testimonials and in October 2014 HMRC proposed to withdraw current guidance and replace it with more comprehensive regulation. A consultation on proposals for legislation has now been published. HMRC’s guidance ( EIM 64120 ) on the taxation of income derived from a sports testimonial takes the approach that unless there is a contractual or implicit entitlement to a testimonial, the proceeds are not likely to be taxable payments of general earnings of the individual. It has been interpreted by those arranging testimonial and other similar events as meaning the proceeds will not usually be taxed where the events have been arranged by an independent committee. HMRC’s view is that testimonial and similar proceeds are primarily derived from the sportsperson’s employment, and the sums received should normally be taxable as general earnings. The intention to rewrite the guidance to clarify this view was set out in a technical note published in October 2014. HMRC considers that its tax treatment of income from sporting testimonials and benefit matches given to sportspeople has departed from the strict statutory position. Following representations from a number of interested parties, the government has published a consultation which puts forward a number of options to put the tax and National Insurance Contributions (NICs) treatment of such income on a firm legislative basis. The changes proposed will affect individual sportspersons who may be awarded a sporting testimonial or benefit after 6 April 2016. The government is seeking views from all interested parties on how any exemption should operate and would particularly like to hear from sporting bodies and advisers and practitioners who may represent those bodies and/or individual sportspersons.
The consultation ends on 2 September 2015.
Apprenticeships levy: employer owned apprenticeships training 21 August 2015
As announced in the Summer Budget, the government are introducing an apprenticeship levy and as such have published a consultation seeking views on how the levy should be paid and implemented.
The consultation proposes that the levy be calculated on the basis of employee earnings and for employers to pay the levy through their PAYE return to HMRC. It also asks:
how the levy should work for employers who operate across the whole of the UK how to make sure that employers paying the levy have the opportunity to get more out than they put in how best to give employers control of apprenticeships.
This consultation will run until 2 October 2015.
CIPP comment The Policy Team will be reviewing this consultation and will issue a survey to gather your views in due course.
P11D(b) and P30B Payslip issued mid-August in error 27 August 2015
CIPP Policy News Journal
25/04/2016, Page 281 of 453
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