The abolition of employer National Insurance contributions (NICs) on young trainees is a “great idea” made at the “right time”, according to commentators inside and outside the tax sector.
Chancellor George Osborne this afternoon announced that firms will no longer have to pay NICs on earnings up to the upper earnings limit for apprentices under 25 years old.
Today’s autumn statement was a mixed bag for non-domestic taxpayers in the UK, experts have suggested, with the Chartered Institute of Taxation (CIOT) praising the announcement that there will be no changes to rules governing a non-residents’ entitlement to the UK personal allowance.
The government had proposed that a restriction should be introduced using an ‘economic connections test’ – but it will now not come into effect before April 2017, following a detailed consultation.
Challenging an HMRC decision about class 2 National Insurance contributions
N S Philpott, D W Scott Law, D J McKillop, J B Law & V A Law (TC3969)
HMRC have announced new fuel rates for company cars, to apply to all journeys on or after 1 December 2014 until further notice. Employers may use either the previous or new rates for one month from the date of change, and therefore make or require supplementary payments, but are under no obligation to do either. Petrol hybrid cars are treated as petrol cars for this purpose. The amounts can be used for VAT, but employers will need to retain receipts.
Yau Wing Liu (TC4118)
So-called pay-day-by-pay-day (PDPD) provisions continue to be used by low-paid agency workers to obtain tax relief for travel costs, despite HMRC deeming such schemes non-compliant, according to the Low Income Tax Reform Group (LITRG).
The inaugural meeting of the taxman’s new employment and payroll group is set to be held on 4 December.
Trade bodies will be joined by software developers, small and large employers, and payroll bureaux to provide primary route through which the Revenue and other government departments will discuss PAYE operational issues with the employment and payroll sectors.
Basic rules for universal credit, and the complexities facing self-employed claimants
Calculating the high-income child benefit charge
Careless error penalties: their application and consequences
How to challenge fines for late submission of PAYE and CIS returns
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