PART 1: DATES, DEFINITIONS AND OBLIGATIONS
of equality requiring the elimination of pay inequality between male and female employees in respect of any single term of employment, rather than to overall remuneration packages.
The Small Business, Enterprise and Employment Act 2015 required the Secretary of State to enact regulations under the Equality Act 2010 which requires certain employers to report their gender pay gap. (See Section 1: Gender Pay Gap Reporting). Since leaving the EU the UK has made no plans to change this requirement. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS EU EXIT Following the enactment of the European Union Referendum Act 2015, which provided for a referendum covering the UK and Gibraltar to be carried out by December 2017, the UK voted, on 23rd June 2016, to leave the EU. The act provided for a non-binding referendum as it was merely designed to test the views of UK citizens towards the EU, however the result, despite being close, was considered to represent a specific desire of the UK to leave. Legislation is in place which triggered the process by which the UK will leave, under Article 50 of the Treaty on European Union, in March 2017. New relationships with both the EU and the rest of the world will probably be re-negotiated over a long period of time, but until it is all done it is difficult to determine how employers and employees will be affected in terms of employment law and taxation. The UK government, however, has made it clear that all laws in place at the point at which the UK leaves will simply remain as part of UK law. Most of the tax law which affects UK employers is unlikely to change as it does not originate from any EU directive, the process by which the EU imposes changes upon member states. The exception to this is VAT which is entirely an EU invention and whose rules are largely created by the EU. There was, however, a UK sales tax which existed prior to VAT and therefore it is not likely that the general rules will change by any great degree. Employment law is almost entirely determined by EU directive and it is understood that such laws will be subject to review post exit and any which are considered to be inconsistent with the new independent UK may be changed. The UK officially ceased membership of the EU at 23.00 GMT on 31 January 2020 and from then entered a transition period which ended at 23.00 on 31st December 2020. Virtually at the last moment a trade and cooperation agreement was reached between the two sides which provides a foundation for detailed negotiations on how the two regimes will work together in the future. No printing, copying or reproduction permitted. EXPENSES and BENEFITS Expenses and benefits of a non-cash nature must be included in annual P11D returns for all Directors and employees, irrespective of their rate of payment. Prior to April 2016 employees whose total annual remuneration, including the value of benefits, was paid at a rate of less than £8,500 had a form P9D completed. Special calculations were needed to determine if an employee was paid at less than £8,500, see HMRC’s guidance at - http://www.hmrc.gov.uk/ manuals/eimanual/eim20101.htm . Further detail can also be found in PART2, TAX.
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