1. The independent Office of Tax Simplification was established on 20 July 2010 to carry out reviews in order to provide expert advice to the Chancellor on options to improve and simplify the UK’s tax system. 2. The OTS team is led by Chairman Rt Hon Michael Jack, and Tax Director John Whiting and has a staff drawn from HM Treasury, HM Revenue & Customs and secondees from the private sector. Details and biographies are available on the OTS website. 3. OTS started its work in September 2010 and initially took forward two reviews: tax reliefs and the first stage of small business taxation (which focused on the IR35 review). Since then, the OTS has issued a further report on the review of small business, which made recommendations for a simpler tax system for the very smallest businesses, a disincorporation relief and many administrative improvements; it is currently carrying out a review of pensioner taxation. 4. There are four recognised tax advantaged share schemes in operation in the UK – Enterprise Management Incentives (EMI), Company Share Option Plans (CSOP), Share Incentive Plans (SIP) and Save as you Earn (SAYE). More detail on these can be found in Chapter 1 and Annexes G-J of the report. 6 April 2011 HMRC have published confirmation that BR will still apply to payments to leavers in respect of share scheme related payments. HMRC have published the following on their website: Amendments to PAYE regulations were laid on 11 March 2011 including a change to the default code to be operated on payments after the issue of a P45, from BR to the newly defined 0T. Where default codes are used to collect tax they do not take into account an individual’s personal allowances or cumulative income in any year. Following representations, HM Revenue & Customs are amending the Regulations with a view to being effective from 6 April 2011, so that BR applies to payments to leavers in respect of share scheme related realisations. Further guidance will be issued before 5 April 2011. Income Tax (Pay As You Earn) Regulations 2011 EMPLOYEE SHARE SCHEME RELATED PAYMENTS FOR LEAVERS
PAYE REGULATIONS 2011 AMENDMENTS TO EMPLOYEE SHARE SCHEMES
20 April 2011 The Tax Information and Impact Note regarding further amendments relating to the PAYE Regulations and employee share schemes have now been published. Follow this link fro full details from HMRC
SHARE SCHEMES AND THE OPERATION OF CODE 0T
10 August 2011 HMRC have become aware of some potential problems relating to the use of code 0T on share payments. If this is an area that you deal with, it is important that you read this news item in full. HMRC have asked us to obtain vital feedback from members who deal with share payments and have set four questions in order to gain a better understanding of the potential issues.
CIPP Policy News Journal
09/10/2012, Page 111 of 234
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