All news – Page 81
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Employers make bonus choices as tax rate changes
Last month, after a media outcry, Goldman Sachs decided not to defer staff bonuses from 2009, 2010 and 2011 to make the most of higher-rate income tax being reduced from 50% to 45% in April.But, on 21 January, insurance broker Aon said that it had offered senior staff this option ...
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Legislation changes on the way in 2013
Catherine Wilson, partner at Thomas Eggar, said a number of statutory maximum awards will increase in February, such as the cap on compensation awards for unfair dismissal and statutory redundancy pay, based on a week’s pay, which will rise to £450.In March, unpaid statutory parental leave will rise from 13 ...
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Single-tier pension to benefit women and low earners
Reforms to the state pension will particularly benefit women who take time out to bring up a family and low earners, according to figures published by the Department for Work and Pensions (DWP).Its Impact assessment on the single tier, published 18 January, also showed that more than half of over-25s ...
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Government proposes pay cap for unfair dismissal awards
The government has published its proposals to reduce the number of workplace disputes that end up at employment tribunals.The proposals, which were announced by employment relations minister Jo Swinson, include the introduction of a 12-month pay cap on the compensatory award for unfair dismissal, as well as the establishment of ...
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Gove confirms performance-related pay for teachers
Education minister Michael Gove has confirmed the implementation of performance-related pay (PRP) for teachers.This follows recommendations from the School Teachers’ Review Body (STRB), which were published in February 2012 and called on the government to link teachers’ pay more closely to their performance.In May 2012, Gove submitted evidence to the ...
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New flat rate state pension is announced
This afternoon the government announced plans to introduce a new flat-rate state pension.The new state pension will come into effect from 2017 as part of a reform package to be announced to Parliament today.At today’s prices it will be worth around £144 a week and will only be paid to ...
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Providers agree to disclose pension charges
The Association of British Insurers (ABI) has announced an agreement to ensure the consistent and straightforward disclosure of pension charges and costs to employees in workplace pension schemes.The agreement will be implemented by the summer of 2014 for schemes that arenewly established for auto-enrolment, and for all older workplace pension ...
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Benefits cap rise limited to 1%
MPs have voted in favour of plans to limit annual increases in working-age benefits to 1% until 2015.The benefits subject to the cap from April 2013 include sick pay, maternity pay, paternity pay and adoption pay.The cap was proposed by Chancellor George Osborne in the Autumn Statement on 5 December ...
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Tax incentives for shareholder scheme announced
Chancellor George Osborne announced in his Autumn Statement that the exemption will come into effect from April 2013.He also said the government would consider options to reduce income tax and national insurance liabilities when employee shareholders receive the shares.Chris Blundell, tax partner at MHA MacIntyre Hudson, said: “I think the ...
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Office of Tax Simplification to review benefits
Chancellor George Osborne said in his Autumn Statement that the review would include “an initial scoping exercise to identify which areas are most complex for taxpayers”.Also, OTS recommendations on approved employee share schemes were confirmed in draft legislation published on 11 December.These include changes to the enterprise management incentive (EMI) ...
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Financial Services Bill gets Royal Assent
The Financial Services Bill received Royal Assent on 19 December.The bill, now an Act of Parliament, will be known as the Financial Services Act and will come into effect from 1 April 2013.It gives the Bank of England responsibility for protecting and enhancing financial stability. It also abolishes the Financial ...
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Tax support for employee owners
Autumn Statement 2012: The government is considering options to reduce income tax and national insurance contributions (NICs) that arise when employee shareholders receive shares from their employer.The options include deeming that the first £2,000 of shares received under the employee-shareholder status would be free from income tax and NICs.As previously ...
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Increase in higher-rate tax threshold
Autumn Statement 2012: Chancellor George Osborne announced in the Autumn Statement today that the higher-rate threshold for income tax will increase by 1% in each year between 2013 and 2016.The rate above which individuals pay income tax at 40% will be set at £41,450 in 2014-15 and rise to £42,285 ...
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Government increases personal allowance
Autumn Statement 2012: The government will increase the personal allowance by an additional £235 as part of its commitment to make the first £10,000 of salary free from income tax.During his presentation of the Autumn Statement, Chancellor George Osborne announced that the personal allowance will rise to £9,440 in April ...
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TUPE regulations to be reviewed
Autumn Statement 2012: The government will shortly launch a consultation on TUPE regulations. The proposals will removeunnecessary burdens on business.
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Employee-owner scheme given go ahead
The government has announced it will go ahead with its plans for an employee-owner scheme.The scheme, which was announced by Chancellor George Osborne on 8 October, would require employees to give up employment rights, such as wrongful dismissal, the right to redundancy pay and the right to ask for flexible ...
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Autumn Statement summary to come
The Employee Benefits’ team will be reporting on the Autumn Statement this afternoon.Stay tuned for breaking news and an email alert summarising all announcements that impact on reward and benefits.
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Tax legislation for share plans set out
The government has published draft tax legislation around share schemes, which will be included in the Finance Bill 2013.This includes measures announced in, and following, the March 2012 Budget and the Autumn Statement announced in December 2012. It is open for technical consultation until 6 February 2013.The measures include:Changes to ...
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Employers given extension before RTI penalities begin
HM Revenue and Customs (HMRC) will not charge employers a penalty for late or inaccurate in-year full payment submissions until April 2014 as part of real-time information (RTI) reporting.The current penalty policy process will continue to apply at the tax year’s end, with a penalty being charged if the relevant ...
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Tax relief overhaul could encourage saving
The pensions tax relief provided by the Treasury has largely failed to encourage people to save for retirement, according to a report by Michael Johnson, pensions analyst at the Centre for Policy Studies.The report, Costly and ineffective: why pensions tax relief should be reformed, found relief on income tax and ...