software developers have been being asked by HMRC, to remove this late reporting reason from their 2016/17 PAYE product.
As the announcement about the end of the relaxation came at quite a late point in the tax year we wondered what would happen if payroll software retained the late reason code E and it was used in error during 2016-17 – would it cause a submission to be rejected? We approached SDST (Software Developers Support Team) to seek clarification.
SDST responded by saying that if an employer decides (and is able) to report reason code E within a 2016/17 FPS then the submission will not be rejected.
“HMRC are taking a more proportionate approach to issuing penalties automatically and are concentrating on the more serious defaults on a risk-assessed basis. It's clear that there are still some employers in certain sectors who find it difficult to comply with the on or before regulations and we will continue to work with these sectors to support them and ensure we respond proportionately to their individual situation.
An automated filing penalty will not be charged if the micro scheme reports their payroll on or before the payment date and late reporting reason code E is present in their FPS.
An automated filing penalty will not be charged if the micro scheme reports their payroll on or before the payment date and late reporting reason code E is not present in their FPS.
An automated filing penalty may be charged if the micro scheme does not report their payroll on or before the payment date and late reporting reason code E is present in their FPS.
An automated filing penalty may be charged if the micro scheme does not report their payroll on or before the payment date and late reporting reason code E is not present in their FPS.”
Finance Bill 2016 10 December 2015
Today is Legislation Day and with it comes publication of all the draft clauses and supporting documents for Finance Bill 2016.
The Government has published new draft tax legislation to implement policies published at Summer Budget and Autumn Statement 2015.
Consultation on the draft legislation will run until Wednesday 3 February 2016, with the final details being confirmed in Budget 2016 and finally introduced in Finance Bill 2016.
To follow is a list of the relevant legislation within Finance Bill 2016 with a brief explanation of what the regulation applies to. The CIPP Policy Team will publish further details where appropriate over the next couple of weeks.
INCOME TAX
Employee share schemes: simplification of the rules This legislation will give effect to a number of changes to the rules for employment related securities (ERS) and ERS options. These simplify and clarify the law as well as making some minor technical corrections. Deductions at a fixed rate This legislation clarifies how the simplified expenses regime should be applied by partnerships in respect of the business use of a home and where premises are used both for business and as a home. Employment intermediaries and relief for travel and subsistence This legislation will prevent workers, engaged through an employment intermediary, and their employers, from benefiting from relief for home to work travel expenses Exemption for trivial benefits in kind This legislation will exempt from Income Tax and NICs low-value BiKs which meet certain qualifying conditions including a £50 limit per individual BiK. Qualifying ‘trivial’ BiKs provided to directors, office holders of close companies, or to their families or households, will be subject to an annual cap of £300 Gift Aid requirements on intermediaries This legislation will allow HM Revenue and Customs to impose penalties on intermediaries if they fail to comply with requirements set out in secondary legislation.
Extending Individual Savings Account tax advantages after the death of an account holder
CIPP Policy News Journal
25/04/2016, Page 293 of 453
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