The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
EIM 21875 - a comparison of the new and old rules EIM 21878 - what an asset is for these rules EIM 21880 - when the rules apply
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Making good deadlines on (non-payrolled) benefits in kind 21 March 2017
There are currently a range of dates set out in legislation and in guidance for making good benefits in kind. As from 6 April 2017 and from the 2017 to 2018 tax year, the latest date for making good for all non-payrolled benefits, other than beneficial loans, is 6 July following the end of the tax year in which the benefit is provided if the amount made good is to be taken into account for tax and NIC purposes. Consequential amendments will be required to sections in the Employment Income Manual where there are references to making good and these have not yet been listed in the latest update provided on GOV.UK regarding alignment of dates for making good . If you have any comments, or queries, on this draft guidance please contact Employment income policy team . The guidance for making good will be finalised and published in the Employment Income Manual following Royal Assent of Finance Bill 2017.
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HM Treasury calls for evidence on employee expenses 22 March 2017
As announced in the autumn statement and detailed in the Spring Budget HM Treasury have a published a call for evidence to help them better understand why there has been a 25% increase in claims between 2009-10 and 2014-15.
The treatment of self-employed expenses is out of scope of this call for evidence .
The main objectives of the call for evidence are to help HMRC better understand:
If the current rules or their administration can be clearer and simpler. The Office of Tax Simplification’s (OTS) review of employee benefits and expenses recommended a policy review of the expenses system to re-establish some general principles and ensure these are in line with current employment practices and government policies. Whether the tax rules for expenses are fit for purpose in the modern economy. There have been major changes in working practices in recent decades, and the main principles behind the current tax rules for expenses were introduced in the mid-nineteenth century, this call for evidence will help to establish whether they remain fit for purpose. Why the cost to the exchequer of the tax relief for expenses which are not reimbursed has increased? HMRC has limited data to explain the reasons behind the 25% increase in claims but wants to understand what drives the cost of this relief to understand the impact on the exchequer over time and ensure the relief is being used in the way it was intended. Views are invited in the call for evidence from anyone with an interest in employee expenses but particularly employers and employees who use the tax relief across all sectors and employer size, and tax professionals and advisors. Respondents may want to draw directly from their own experience and a wider understanding of practices in different sectors. Respondents should feel free to provide broad evidence or answer specific questions. The government is particularly interested in quantitative data where possible on:
current employer practices on employee expenses current tax rules on employee expenses the future of employee expenses.
This call for evidence includes 17 questions and will close 12 June 2017.
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