The UK personal allowance is very generous and amongst the highest in the world and it is currently granted to more non-residents that many other tax jurisdictions. Many other countries restrict non-residents’ entitlement and the government is currently considering whether the UK should also look to place some form or restriction or test on eligibility for the UK personal allowance.
The consultation paper Restricting non-residents’ entitlement to the UK personal allowance is available at GOV.UK website and provides:
In chapter 2 - the current rules for how non-residents are entitled to the UK Personal Allowance; In chapter 3 - the case for restricting the entitlement of non-residents to the UK Personal Allowance which includes a comparison of the UK to other jurisdictions; In chapter 4 - how other countries operate a restriction on non-residents’ entitlement to equivalents to the UK Personal Allowance; and In chapter 5 - seeks views on a possible model for restricting entitlement to the UK Personal Allowance for non-residents. In chapter 6 - sets out the government’s initial assessment of the impact of any change in entitlement on individuals and businesses. Given the complexity of international tax provisions, it breaks this down by different types of taxpayer and different forms of taxable income. This survey is aimed at all members and whilst many of the questions may prove to be more of relevance to members who work with inbound or out bound expat employees/pensioners, or employees who are non UK residents e.g. seasonal workers from overseas, importantly for payroll, the survey includes questions about the starter process and the impact on PAYE processes and any proposal or suggestion that impacts upon the starter process will impact upon anyone who is required to operate PAYE i.e. employers, payroll practitioners, pensions schemes, agents and software developers.
Because of the high level nature of this consultation you will need to have sight of the consultation paper whilst completing the survey which closes on 19 September 2014.
Thank you for sharing your valuable time to help develop future proposals for entitlement to the UK personal allowance.
HMRC Employer Bulletin - Issue 49
20 August 2014
HMRC have issued the second of their new look Employer Bulletins which have moved from a 3 times a year production cycle to a more frequent 6 issues in a year. The aim of which is for HMRC to deliver clear, consistent and timely information written to enable the employer to meet their payroll obligations. This issue 49 covers a range of subjects, one of which is aimed at the employee with information about the new digital offering PAYE for Employees which is a new online service for individuals who fall within the PAYE system. The service is to be available from the end of September 2014 and will allow an employee to view, add and amend their company car and car fuel details online rather than notifying HMRC about any changes to their circumstances, by phoning or writing. Initially PAYE for Employees will allow an employee to view and make changes to a limited range of benefits in kind that will alter their tax code online for the first time. Additional functionality will be added to let employees report other changes affecting their tax code.
CIPP Policy News Journal
08/04/2015, Page 271 of 521
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