Exemption threshold for employer provided beneficial loans
The threshold will increase from £5k per annum to £10,000 from April 2014.
CIPP comment: As many payroll professionals will be aware, the CIPP ran a survey in January 2013 after the rail fare increases to understand the impact on employers who provide beneficial loans to assist with rail season tickets. The results showed overwhelming support for the CIPP policy team to lobby HMT to consider increasing the £5k limit. The CIPP welcome this news as it will clearly aid many employees and therefore employers to assist with the ever increasing rail fares. Collection of debts through PAYE tax codes The government has announced that later this year it will consult on how it can improve the collection of tax debts through PAYE tax codes to include how they can increase the size of debt that can be recovered through a tax code for those with higher earnings. Scoping exercise into partnerships The Office of Tax Simplification will carry out a scoping exercise as part of a review which will look to simplify the taxation of partnerships. More on this to follow.
Pension Tax Relief The Finance Bill 2013 will confirm the previously announced pension tax relief changes that
result in, for the 2014/15 tax year onwards: Annual Allowance £40,000 per annum Life Time Allowance £1.25million
Individual tax relief protection The government will consult on the detail of the individual protection regime that will apply when the standard life time allowance is reduced to 1.25 million. CIPP comment: The CIPP currently sits on the Pensions Industry Stakeholder Group and will be consulting on the impacts with members in the coming months. Income Tax/NI treatment for employee shareholders The government is proposing to reduce or eliminate the income tax and NICs due when employee shareholders acquire shares, by deeming that they have paid £2,000 for the shares. This will ensure that the first £2,000 of share value received by employee shareholders is not subject to income tax or NICs. Self-employed NICs simplification consultation The government is to consult on proposals to simplify NICs for the self-employed, specifically looking to collect Class 2 NICs as part of self-assessment alongside Class 4 NICs and Income Tax. Confirmation of small business tax simplification Finance Bill 2013 will bring in legislative change required to simplify accounting practices for small business as announced in Budget 2012 and will be effective for5 accounting periods from April 2013. Corporation Tax reduction The Chancellor announced yet another reduction in the rate of Corporation Tax. The rate of 21 percent in 2014 will be reduced to 20 percent from 2015. The rate from April 2013 is as previously announced at 23 percent.
CIPP Policy News Journal
12/04/2013, Page 150 of 362
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