The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
The government announced changes to the company car, provided living accommodation and loan benefit in kind legislation in Budget 2016 that were effective from 6 April 2016. These changes ensure that the relevant benefit in kind legislation applies in the way the legislation applied before the Apollo Fuels judgment. HMRC have produced guidance for compliance staff about how to handle open enquiry cases for up to and including the tax year ending 5 April 2016 where the Apollo Fuels judgment could be in point. This guidance covers both cars and vans and can be found in the Employment Income Manual . Mileage regulations In November 2015, as part of the introduction of the new exemption for paid or reimbursed expenses which replaced the dispensations regime, amendments were made to the Income Tax (Pay As You Earn) Regulations 2003 to remove the requirement for expenses payments to be reported on form P11D. However, those amendments also inadvertently removed the requirement to report taxable mileage allowance payments and taxable passenger payments on form P11D. This was not the intention, as the new exemption for paid or reimbursed expenses was not intended to affect the tax treatment of mileage payments. Therefore a further amendment to those regulations was made in July to correct this error. Statutory Payments Calculator The Statutory Payments calculator should not be used when a mistimed payment has occurred in the relevant period as it will not use the correct divisor to calculate the average weekly earnings. Using the calculator in such cases will not produce the correct entitlement.
Where mistimed payments have occurred in the relevant period, employers should calculate entitlement manually in accordance with the guidance on GOV.UK .
Employer Bulletin 61 - August 2016
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Employer Bulletin - October 2016 14 October 2016
A key message in the latest Employer Bulletin is the importance of helping HMRC with some specific questions on the consultation for Making Tax Digital.
“Making Tax Digital will involve significant changes to the way in which the tax system will operate and as such will impact the way you currently operate your payroll. The article on page 2 gives you with some information about the consultation pack and provides a link to the actual document. It also includes a request to employers to respond to the consultation, especially in relation to some specific questions outlined in the article and also asks for volunteers to work alongside us to develop these changes. So please don’t underestimate the scale of these changes and if you can please respond to the consultation document and send us your details if you are interested in helping us make sure we get this right for both employers and individuals.”
On Tuesday 25 October from 1pm to 2pm |HMRC are hosting a Talking Points webinar on Making Tax Digital which will also give you an opportunity to provide HMRC with your views and responses to the six Consultation Documents released on 15 August 2016. You can register here for this session .
The Employer Bulletin is a must read for employers and agents to find out the latest information on payroll topics and issues.
Employer Bulletin: October 2016
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The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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