• Equipment is obtained for the sole purpose of enabling the employee to work from home as a result of the coronavirus outbreak • The provision of the equipment would have been exempt from income tax under section 316 of ITEPA if it had been provided directly to the employee by or on behalf of the employer Section 316 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) provides a tax exemption where an employer provides home office equipment directly and retains ownership of that equipment, and the employee’s private use is not significant.
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Informally payrolling benefits no longer an option for tax year 2021-22 onwards 19 March 2021 There are a very small number of companies that opt to informally payroll benefits. What this means is that they do not register to use the online service for payrolling benefits by the start of the tax year, and instead make an agreement with HMRC to payroll informally for that year. From tax year 2021-22, this will no longer be an option, and those employers who previously chose to informally payroll benefits are now also required to formally register for payrolling benefits prior to the start of 2021-22. Registration must be completed by 5 April 2021, at the very latest. Within the February edition of the Employer Bulletin, HMRC’s stance was very clear – that it will no longer accept informal arrangements. Where employers opt to payroll benefits, there is no requirement for them to complete individual P11Ds for any employees who have all of their benefits payrolled. These employers will, however, still need to submit a P11D(b) to HMRC to allow them to pay any Class 1A National Insurance (NI) that they owe. The P11D(b) still needs to be filed by 6 July following the tax year it relates to, and payment of Class 1A NI is required by 19 July, or 22 July, where it is paid electronically. When payrolling of benefits is operated, the administrative burden relating to providing numerous P11Ds is removed, and there is less pressure relating to that 6 July deadline. It also means that benefits are reported in alignment with employee pay on the Full Payment Submission (FPS). Tax deductions will be made on most employee benefits in real time, rather than in the following tax year, through adjustments to tax codes.
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Approved professional organisations and learned societies (list 3) 25 March 2021
HMRC has updated the list of professional bodies and learned societies (also known as List 3) with tax-deductible fees.
For some professional organisations, members can claim tax relief on fees or subscriptions.
List 3 shows all organisations whose members qualify for a tax deduction on professional fees and subscriptions pertaining to that organisation.
The list is updated periodically, and includes all bodies approved by the commissioners for HMRC.
HMRC has confirmed that there has been three additions to, and two removals from the list, as follows:
Additions (with effect from 6 April 2020)
German Informatics Society (GIS) Operations Research and the Management Sciences Institute for (INFORMS) Lipspeakers with Additional Sign Association of (ALAS)
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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