The Chartered Institute of Payroll Professionals
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• additional automatic penalties of £300 will be charged if the return is still outstanding three months after the original deadline of 6 July, and a further £300 if it’s still outstanding six months after that date • if the initial penalty has been received and paid, an end of year or nil return still must be submitted to meet filing obligations. EMI: changes regarding restrictions in option agreements and working time declarations The below changes were announced by the government, at the Spring Budget on 15 March 2023. These changes are also set out in ERS Bulletin 49. employer companies are no longer required to set out within the option agreement, details of any restrictions on the shares that can be acquired for EMI options granted on or after 6 April 2023. This change also applies to EMI options granted before 6 April 2023 which have not yet been exercised • before entering into an option agreement, it is still necessary for an employee to be aware of all the terms and this includes any restrictions on the shares that can be acquired. EMI working time declarations: • employer companies will no longer need to declare that an employee has signed a working time declaration when they are issued an EMI option, for EMI options granted on or after 6 April 2023 • from 6 April 2023, there will be no requirement for an employee who has acquired EMI options to sign a working time declaration • the changes also apply to EMI options granted before 6 April 2023 which have not yet been exercised Restrictions in EMI option agreements: • However, employees must still comply with the working time requirement. Further details about the working time requirement are at Enterprise Management Incentives (EMI): Eligible employees: Working time commitment. The Employee Tax Advantaged Share Scheme User Manual (ETASSUM) has also been updated to reflect EMI changes. Changes to the dividend allowance • from 6 April 2023, the government reduced the dividend allowance from £2000 to £1000. From 6 April 2024, it will be reduced to £500. This means that employees who receive dividends from shares acquired through a share scheme, including Share Incentive Plans (SIP), may be liable to pay tax on dividends where they were not before • employees who have received taxable dividends will need to report them to HMRC • the changes to the dividend allowance do not affect dividend shares acquired through a SIP, where dividends received from SIP shares are used to buy further shares through the scheme. These dividends are not taxable.
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HMRC update: guidance on payrolling benefits and phone lines Published: 17 May 2023 Emailed: 17 May 2023
HM Revenue and Customs (HMRC) has now updated the GOV.UK guidance on payrolling benefits and expenses. There has also been a notification of change in timings for the Employer Services helpline.
Below are the key updates on guidance’s for this week:
• guidance for ‘Payrolling: tax employees' benefits and expenses through your payroll’ has been updated. ‘How to register for payrolling benefits and expenses’ section has been changed as there is no longer any informal payroll arrangements from April 2023
• guidance : ‘Payrolling employees: taxable benefits and expenses’ has been updated. The section on ‘Submitting electronic P11Ds’ has been changed, as employers no longer need to use the service to send P11D’s in for payrolled employees from April 2023.
HMRC Employer Services update
Due to industrial action between 10 May – 2 June 2023, HMRC Employer Services phone lines will be open between 9:00AM-5:00PM.
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