CONSULTATION ON THE IMPLEMENTATION OF A TAX EXEMPTION FOR EMPLOYER EXPENDITURE ON HEALTH-RELATED INTERVENTIONS
21 June 2013
On 20 March 2013 the Chancellor of the Exchequer announced that employers that help their employees to return to work after periods of sickness will get new support through the tax system. The recommendation is that expenditure by employers on medical treatment and vocational rehabilitation targeted at keeping sick employees in work, or speeding their return to work, should attract tax relief. The government feels that a general tax relief for medical expenditure would be too broad and intends to introduce a new targeted tax exemption to apply where the new service recommends health-related interventions to help an employee return to work. Where an employer funds such interventions, the expenditure, up to a cap of £500, will be exempt from income tax and National Insurance Contributions (NICs). The £500 cap will apply per employee over a complete tax year. It will be valid for more than one health-related intervention recommended by the new service, subject to the overall annual limit. Any expenditure over the £500 cap will, as now, be classed as payment of earnings or a benefit-in-kind, depending on the type of expenditure, and will be subject to the appropriate deduction of income tax or reporting on form P11D, and either Class 1 or Class 1A NICs. The government has now published a consultation document seeking views on the implementation of this exemption. The CIPP Policy Team has been seeking clarification about how this exemption would be applied since it was announced back in March. We welcome, therefore the publication of this consultation document which we will study before publishing a survey to collect your views in the very near future.
HMRC EXPENSES & BENEFITS ONLINE SERVICE
24 June 2013
HMRC has now unveiled the complete set of online forms available for employers and agents to use to submit end of year expenses and benefits information for 2012-13 onwards.
The online service began its release back in April with the release of two forms:
'No Return of Class 1A National Insurance contributions' - used to report that no P11Ds or P11D(b) are due and 'Notification of payrolled benefits' - used to notify HMRC in advance that they will be sending P11Ds online that include all expenses and benefits provided to employees that have been fully payrolled
From this month (June 2013) the online forms available have been extended to make available:
P11D and P9D - used to report expenses and benefits paid to employees P11D(b) - used to report to HMRC the amount of Class 1A National Insurance contributions due on these expenses and benefits Creation of amended forms P11D, P9D and P11D(b) Creation of forms P11D and P11D(b) for those expenses and benefits that have been part payrolled
CIPP Policy News Journal
16/04/2014, Page 140 of 519
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