Payments after P45 issued and Share Schemes Payments
PENSIONER TAXATION AND SHARE SCHEMES TO BE REVIEWED
13 July 2011 The Office of Tax Simplification (OTS) is to turn its attention to pensioner taxation and employee share schemes in two new projects. These will run alongside the OTS’s ongoing review of small business tax administration and will continue its work to simplify the UK’s tax system. The Treasury Press Release states that the review of pensioner taxation will gather evidence from pensioner groups and other interested parties in order to identify and examine the parts of the tax system that cause taxpayers the most difficulties, look at how this varies across the pensioner population, and propose ways to improve the situation. The employee share schemes project will initially examine the four tax advantaged, or Government approved, schemes to identify where they are complex and place unnecessary administrative burdens on their users, and to suggest ways they could be simplified. The OTS will go on to look at unapproved share schemes later in 2012. David Gauke said: “The tax system we inherited was a spaghetti bowl of reliefs and exemptions that pensioners and small businesses find particularly hard to navigate. We want the Office of Tax Simplification to look at how we can make life simpler for taxpayers who just want to comply with the rules and pay their taxes.” Follow this link to read the letter from Exchequer Secretary to the Treasury, David Gauke, to the OTS 3 August 2011 HMRC have provided an update on what to do when a final payment is made up of share scheme related income and also a standard payment. Tax code BR is operated on share related income and 0T on the standard payment. As previously noted HMRC recognises this causes employers, share scheme administrators and software developers with a significant issue when the mixed payment is made as one, or separately but in the same tax period. HMRC intends to consult further on this issue, and will consider the options available. HMRC will inform all parties concerned when a decision is reached. With regard to the above scenario and the tax code that should be entered on the individuals P14. HMRC’s advice is to record tax code 0T as the final tax code on the P14. Please email sdsteam@hmrc.gsi.gov.uk if you have any queries about this guidance. UPDATE ON TAX CODE APPLIED TO PAYMENTS AFTER P45 ISSUED
REVIEW OF THE APPROVED EMPLOYEE SHARE SCHEME PLANS
11 November 2011
CIPP Policy News Journal
09/10/2012, Page 108 of 234
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