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 CIPP comment: The previous proposal that Child Benefit would be withdrawn from higher rate taxpayers was always controversial.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
Employees and directors who are provided with a company car and who also receive free fuel from their employers are subject to the Fuel Benefit Charge. The multiplier used to calculate the cash equivalent of the benefit of free fuel provided to employees will increase from £18,800 to £20,200 for the tax year 2012-13. As a result of this change the fuel benefit charge will increase for fuel provided for all cars apart from zero emissions cars. In addition to announcing the Fuel Benefit Charge multiplier for 2012-13, the Government is also announcing the 2013-14 rate, whilst committing to announce all future rates a year in advance.
The van Fuel Benefit Charge multiplier will be frozen at £550, and will increase by inflation in 2013-14.
CIPP comment: The CIPP welcomes advance notice of the 2013-14 Fuel Benefit Charge multiplier.
Company Car Tax Rates 2014-15 to 2016-17
CIPP Policy News Journal
12/04/2013, Page 145 of 362
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