PART 1: DATES, DEFINITIONS AND OBLIGATIONS
2018
Scottish parliament makes sweeping changes to PAYE tax rates and thresholds Implementation of General Data Protection Regulation No benefit in kind charges on electric car recharging provided by employers and a new 4% surcharge for some diesel company cars Commitment to a £12,500 personal allowance and £50,000 higher rate threshold brought forward by one year Euro 6d diesel powered company cars exempt from new 4% surcharge Welsh Income Tax becomes a reality with a 10% rate of tax. Personal allowance and higher rate threshold frozen. NICs primary threshold rises by over 10% but the secondary (employer’s) threshold by less than 2%. This means the primary and secondary thresholds are different for the first time since 2013. Electric and part electric company vehicles taxed depending on the number of miles the vehicle can travel on electric only without recharging. NIC Primary threshold increases by £868 to £9,500, an increase of over 10%. Employment Allowance rose to £4,000 from its previous value of £3,000. Emergence of Covid-19 and along with it a number of measures to protect employers, employees and businesses during extended preiods of restrictive movement. Personal allowance increases to £12,750 whilst the basic rate threshold rises to £50,270 and will then be frozen till April 2026. NIC primary and secondary thresholds rise by £1 each to £183 and £170 a week respectively. The UEL, UST and AUST all rise by £5 a week to £967 a week. Off-payroll working rules come into effect for all workers in all environments. Welsh Income Tax continues to mirror the rest of UK. No printing, copying or reproduction permitted.
2019 COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS 2020 2021
MANAGED SERVICE COMPANIES (MSC) AManaged Service Company is an intermediary company that facilitates workers providing their services to clients. Such companies seek to promote and provide a structure for those workers to reduce tax and NICs liabilities. From 6th April 2007 all payments received by a worker through an MSC contract are deemed to be employment income whatever form the remuneration may take. From that date all earnings should have been subject to PAYE and in addition, from 6th August 2007 liability extended to Class 1 National Insurance Contributions. Where a MSC is unable to meet its PAYE liability, power exists to transfer the debt to the company’s director, the service provider and in certain cases to third parties.
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