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.
THE QUEEN’S SPEECH 2013 – WHAT IMPACT FOR PAYROLL?
8 May 2013
Following on from the government’s aims outlined in the March Budget, the Queen’s Speech reiterated the commitment from Her government to rewarding “people who work hard."
So, that’s good for those of us working within the Payroll Industry, as we look forward to receiving our just rewards!
You could be forgiven for thinking that with a speech being delivered in just over 7 minutes, the government doesn’t have a lot planned for the coming parliamentary session, how wrong you would be! The Briefing Notes running to a tune of 92 pages would argue otherwise and just as we expect with the Budget, the ‘detail’ rather than the speech itself will undoubtedly provide us with more than we may have thought at first hearing!
In the meantime however, our workloads have been assured by way of the following statements:
… commitment to give every business and charity a £2,000 allowance towards their National Insurance Contributions bill, from April 2014, which is said to potentially benefit 1.25 million businesses; Increase to the income tax personal allowance by £560 to £10,000 from April 2014 which will take 2.7 million people out of tax altogether… (but will this lighten the administrative burden on the employer?)
CIPP Policy News Journal
16/04/2014, Page 46 of 519
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