HMRC have published an updated technical note and call for evidence giving notice of the proposed withdrawal of five extra statutory concessions from 2013-14 tax year. Filing extension for form P11D(b) withdrawn By concession, HMRC does not issue penalties for late filing of P11D(b) returns provided they are received by 19 July following the end of the tax year. HMRC will withdraw this practice from 31 March 2013. P11D(b) returns filed after this date must be made by the deadline of 6 July following the end of the tax year in order to avoid penalties.
Salary Sacrifice
CHANGES TO THE TREATMENT OF CERTAIN SUPPLIES MADE BY EMPLOYERS UNDER SALARY SACRIFICE ARRANGEMENTS 3 August 2011 Revenue & Customs Brief 28/11 announces changes to the treatment of certain supplies made by employers under salary sacrifice arrangements following the CJEU Judgment in Case C-40/09. Astra Zeneca operated a flexible remuneration package scheme under which employees could opt to take part of their remuneration in the form of goods and/or services rather than as salary. The case before the Court of Justice of the European Union (CJEU) concerned the correct VAT treatment of high street shopping vouchers provided to employees as one of the options of the scheme. The Court found that the provision of vouchers amounted to a supply of services effected for consideration. As a consequence, whilst Astra Zeneca was able to recover VAT incurred on acquiring the vouchers, output tax was due on the consideration received from its employees. Although this case was concerned with the supply of vouchers to employees, the principles considered by the Court are of general application and will apply to other supplies of goods and services to employees. Businesses providing benefits under arrangements, which qualify as salary sacrifice schemes for VAT purposes, must account for output VAT on these supplies, where they are subject to VAT. In order to allow businesses time to make the necessary adjustments, HMRC will not require output tax to be accounted for on taxable benefits provided under salary
sacrifice schemes, until 1 January 2012. Read the full brief on HMRC’s website
GUIDANCE ON CYCLE TO WORK AND VAT PAYMENTS
5 October 2011 Revenue & Customs Brief 36/11 provides further guidance to assist businesses with the implementation of changes to VAT accounting in relation to salary sacrifice arrangements announced in Revenue and Customs Brief 28/11 on 28 July 2011. Salary sacrifice agreements in place before 28 July 2011 which extend beyond 31 December 2011 For salary sacrifice agreements that were signed or otherwise agreed by the parties on or before 27 July 2011 and which extend beyond 31 December 2011, HM Revenue & Customs (HMRC) will allow amounts of salary foregone in return for taxable benefits to continue to be free of VAT until:
CIPP Policy News Journal
09/10/2012, Page 82 of 234
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