News – Page 30
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Employee Benefits/Towers Watson Flexible Benefits Research 2012: Tax-efficient benefits
Changes in tax legislation have made employers more wary about certain benefits, but any tax and NI savings are a strong draw in straitened times, says Tynan BartonSome 85% of employers offer tax-efficient benefits through flex, a small drop from the 90% that did so in 2011. In 2008, this ...
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Budget 2012: Government consultation on integrating income tax and NI due in April
Chancellor George Osborne has confirmed that the consultation on the integration of income tax and national insurance (NI), as announced in the 2011 Autumn Statement, will be published in April.The plans to consult on the integration of income tax and NI were announced in a paper in November 2011, which ...
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Budget 2012: Tax reliefs capped at 25% of income for higher earners
The government is to introduce a limit of 25% of income on all uncapped income tax reliefs for those earning more than £50,000 annually, announced Chancellor George Osborne in the 2012 Budget report.This will increase effective tax rates and help ensure that those with the highest incomes pay a fairer ...
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Budget 2012: 50p tax rate to be reduced to 45p
The top 50p rate of income tax is to be reduced to 45p from April 2013.In the Budget report 2012, Chancellor George Osborne said the 50p rate, which is levied on taxable income above £150,000 a year, has damaged Britain’s competitiveness.Sean Drury, tax partner at PricewaterhouseCoopers (PWC), said the move ...
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Budget 2012: Tax relief on luncheon vouchers scrapped from 2013
As announced in the Budget 2011 and Finance Bill 2012, the government has now confirmed that it will proceed with the abolition tax relief on luncheon vouchers from 6 April 2013.Luncheon Vouchers are currently NIC and tax exempt up to £36 a year. That is, roughly, a tax break on ...
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Budget 2012: Tax relief abolished on some group life assurance premiums
As previously announced, from 6 April 2015, tax relief will be abolished on group life assurance premiums paid by employers under employee-funded retirement benefit.Read more stories from the Budget 2012
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Duncan Brown: What is on your wish list for the Budget on 21 March?
I would like to see more substantive action announced by the Chancellor to encourage employers to provide meaningful work opportunities for young people, with record levels of youth unemployment across Europe being one of the most distressing aspects of our current economic malaise. But the problem is primarily one of ...
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David Heaton: What is on your wish list for the Budget on 21 March?
My wish list is about making life simpler for employers. All governments want to make life simpler for business: they cannot offer tax cuts, so they try to make the tax collection process as painless as possible.I would offer the following ideas:Realign the starting threshold for employer and employee national ...
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Office of Tax Simplification publishes recommendations for employee share schemes
The Office of Tax Simplification (OTS) has published a report on employee share schemes, recommending the removal of the approval process for sharesave schemes, share incentive plans (Sips) and company share option plans (Csops).The Review of tax-advantaged employee share schemes also recommends merging the current enterprise management incentive (EMI) and ...
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Rangers Football Club awaits ruling in employee benefits trust tribunal as it enters administration
Rangers Football Club has entered administration as it awaits the verdict in an HM Revenue and Customs (HMRC) tax tribunal, which concerns its use of an employee benefit trust (EBT).An EBT is a discretionary trust used for the benefit of employees. The Scottish football club used EBTs to pay players’ ...
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EXCLUSIVE: Freshfields saves tax and NI through salary sacrifice
Law firm Freshfields Bruckhaus Deringer has saved its staff £2 million in tax and national insurance over the past 12 months through salary sacrifice, and has revamped its flexible benefits.This message was used in a poster campaign around the annual enrolment period for its Benefits Plus plan. Jackie Palmer, senior ...
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Reed Group loses tribunal appeal on salary sacrifice arrangements
Twelve Reed Group organisations have lost an appeal in a case that concerned the tax treatment of travel and subsistence payments to staff.The scheme was set up by way of a salary sacrifice arrangement.The case, in the First Tier Tribunal, concerned payments made between January 2001 and April 2006 to ...
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Police Arbitration Tribunal supports pay overhaul
The Police Arbitration Tribunal has backed major changes in police officers pay, as recommended in Tom Winsor’s Independent Review of Police Officer and Staff Remuneration and Conditions.The recommendations include a suspension on bonuses, two-year freeze on police officers moving up incremental payscales, and curbs on overtime pay.Paul McKeever, chairman of ...
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Simplyhealth publishes guide on tax implications of healthcare benefits
Simplyhealth has published a guide for employers about the tax implications of providing healthcare benefits to staff.The guide, Taxation implications for company-paid healthcare, explains tax implications for both employers and employees. It covers insurance premium tax, national insurance contributions, income tax, corporation tax, and value-added tax.Howard Hughes, head of business ...
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Government will not abolish tax relief for late-night taxis
The government has changed its mind on withdrawing the tax relief for late-night taxis.In October 2011, the government tasked the Office of Tax Simplification (OTS) with identifying all the tax reliefs, allowances and exemptions, for employers and employees, and review what should be done with them.The OTS recommended that the ...
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High Court rules index switch for pensions is lawful
The High Court has rejected a claim by public sector unions that the government’s decision to switch from the retail prices index (RPI) to the consumer prices index (CPI) for future pension increases was unlawful.The judicial hearing began on 25 October 2011 to challenge the switch, which was announced by ...
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Autumn Statement 2011: Government looks to overhaul red tape on employment issues
The government is to look into overhauling red tape around several employment issues.In the Autumn Statement 2011, Chancellor George Osborne announced that it is to look at whether, and how, a rapid resolution scheme could be introduced as an alternative to the current employment tribunal process to provide quicker, cheaper ...
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Autumn Statement 2011: Income tax personal allowance to rise to £10,000
As announced in the Budget in April 2011, income tax personal allowance will increase to £8,105 in 2012-13.In the Autumn Statement the government announced further real terms increases in subsequent years towards the goal of a £10,000 personal allowance.Read more news from the Autumn Statement 2011
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KPMG research: UK turns corner on corporate tax competitiveness
The UK has turned a corner on its corporate tax competitiveness, according to research by KPMG.The 2011 UK Tax competitiveness survey, which polled 50 large UK organisations, claimed that the improvement is driven by reforms to the taxation of foreign profits and the government’s commitment to making the UK tax ...
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Government sets out next steps for merging income tax and NI
The government has published a paper setting out its next steps for the merging of income tax and national insurance (NI).The paper summarises the results of the call for evidence, and explains the principles that the government will apply when considering options for reform.As set out in the paper, the ...