Policy News Journal - 2016-17

The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal

Company car tax for ultra-low emission cars 15 August 2016

HM Treasury has published a consultation to seek views on the design of new ultra-low emission vehicle bands in the company car tax system.

The consultation - Company car tax for ultra-low emission cars seeks to explore how best to incentivise the cleanest cars into the next decade, a period during which rapid innovation will deliver significant changes in the way motor vehicles are powered.

Company car tax rates and bands, including for ultra-low emission cars (ULEVs) are already legislated for until 2019-20. This consultation seeks views on the design of bands for ULEVs from 2020-21 onwards.

Responses are welcomed from a wide range of stakeholders including individuals, companies, and representative and professional bodies. In particular, a key issue is how to incentivise the uptake and development of step-change technologies over incremental improvements in existing technologies.

This consultation closes 20 October 2016.

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Worldwide subsistence rates 19 August 2016

The benchmark scale rate expenses payments for employee travelling outside the UK are to remain the same for the year commencing October 2016.

The Worldwide subsistence rates published in October 2014 will continue to apply for the year commencing October 2016.

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Planning to payroll Benefits in Kind in 2017? 24 August 2016

If you are planning to take up voluntary payrolling of Benefits in Kind (BiKs) you can register now.

You can register anytime between now and 5 April 2017, however HMRC advises employers to register before the annual tax coding process begins, which is usually around 21 December to avoid being sent multiple tax codes for employees with payrolled benefits. All employers who wish to use the statutory framework for payrolling benefits in real time must register with HMRC and this includes employers who currently have ad hoc payrolling arrangements with HMRC and wish to continue under the new framework.

Employers just use their Government Gateway ID to login and register their payrolling requirements. Agents cannot use PBIK registration service but HMRC does plan to develop the Agents Service later.

The benefits that the employer selects must be payrolled for all the employees that are covered by payrolling that receive the same benefit. Any benefits that the employer does not select but does provide must be reported on a P11D.

The employer’s section of benefits applies for the whole tax year although, if an employer starts providing a benefit for the first time during a tax year, this can be added.


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