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Employees

HMRC’s Employment Income Manual states that “PAYE is not generally due on a non-transferable store gift voucher.” However, this does not mean no income tax will be due

The original director of a business is now over the retirement age and he is under pressure from a new director and co-shareholder to retire. A compensatory payment of £30,000 has been mentioned

The Office of Tax Simplification’s proposals for pruning unapproved share schemes

Employers and tax agents can now report end-of-year expenses and benefits electronically, using a new set of online forms. The service is likely to be most useful for small and medium-sized employers when submitting their employees’ expenses and benefits information, said HMRC.

Only two forms are available – with an equivalent for agents to use on behalf of clients – but more are planned. Web users can access currently:

HMRC claim to class 4 liability “on shaky foundations”, says Baker Tilly partner

L Meynell-Smith (TC2531)

C Rawcliffe (TC2529)

Nap Anglia Ltd (TC2579)

The long-running trial of real-time information ends today, with the new system for reporting PAYE launching tomorrow (6 April) for the vast majority of employers.

The end to the pilot scheme means HMRC will no longer issue their monthly online updates, and “it is no longer appropriate… to retain the dedicated email box as a route for contact for pilot employer queries”.

Builders are seen by HMRC as easy targets, claims accountancy provider

Murray Group Holdings & others (TC2372)

The government’s plans for a third employment status continue to change, with today’s Budget introducing a further tax break.

Workers who sign employee-shareholder contracts will pay no income tax or National Insurance (NI) on the first £2,000 of shares they receive from their employer company, the Treasury announced.

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