From 2013-14, the amounts of these allowances will not be increased. From 2013-14, people born after 5 April 1948 will be entitled to a personal allowance of £9,205 for 2013-14. CIPP comment: The CIPP welcomes the simplification of the income tax allowances, however pensioners, although not actually losing out, will have the cash value of their allowance frozen until it matches that of those under 65.
Cap on unlimited tax reliefs
Legislation will be introduced in the Finance Bill 2013 to apply a cap on income tax reliefs claimed by individuals from 6 April 2013. The cap will apply only to reliefs which are currently unlimited. For anyone seeking to claim more than £50,000 in reliefs, a cap will be set at 25 per cent of income (or £50,000, whichever is greater) Draft legislation will be published for consultation later this year. CIPP comment: The CIPP awaits with interest the consultation document to be issued later this year.
PAYE Penalties
The Government will consult before the summer on a new model for PAYE late payment and late filing penalties, ahead of the main roll-out of Real Time Information in October 2013. There will also be a regulation-making power introduced to ensure the required RTI information is submitted by employers. CIPP comment: The CIPP will be involved with this consultation and members will be invited to share their views.
Child Benefit income tax charge
Legislation will be introduced that imposes a new charge on a taxpayer who has adjusted net income over £50,000 in a tax year, where either they, or their partner, is in receipt of Child Benefit for the year. This will have effect from 7 January 2013.If both partners have adjusted net income over £50,000; the partner with the higher income is liable for the charge which will be collected through Self Assessment and PAYE. The income tax charge will apply at a rate of 1% of the full Child Benefit award for each £100 of income between £50,000 and £60,000. The charge on taxpayers with income above £60,000 will be equal to the amount of Child Benefit paid. CIPP comment: The previous proposal that Child Benefit would be withdrawn from higher rate taxpayers was always controversial. The CIPP welcomes today’s announcement although it is yet to be seen to what extent this income tax charge will affect payroll.
Car and van fuel benefit charge 2012-13 & 2013-14
CIPP Policy News Journal
09/10/2012, Page 104 of 234
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