Tax & Legislation news – Page 18
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ArticleOTS benefits simplification reforms not likely until 2017
The Office for Tax Simplification (OTS) is simplifying the way employee benefits and expenses are taxed but some of the reforms could be unlikely until 2017.Speaking at Employee Benefits Live 2014 on 24 September John Witting, tax director at OTS, said: “We are looking for opinions and views on issues ...
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ArticleFord justified in not paying enhanced paternity pay
An employment tribunal has ruled that car manufacturer Ford was justified in not paying enhanced paternity pay to a male employee during additional paternity leave.In the case of Shuter v Ford Motor Company, an employment tribunal ruled that the organisation was not obliged to provide enhanced pay incircumstances where it ...
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ArticleFemale professor loses equal pay appeal
A female University of London professor has lost a sex discrimination case against her employer after it was found that her male colleagues’ bonus payments were retention fees, despite her claim that the university’s genuine material factor defence was tainted.The claimant was appointed to the university in 1996 and claimed ...
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ArticleReward teams can learn from banking pay issues
Jane Richards (pictured), remuneration specialist at Investec, is to speak about the challenges of setting reward and pay policies for employees in the banking sector at Employee Benefits Live.The session, titled ‘Pay strategies in today’s economic climate’, will look at these challenges in the context of the EU and UK ...
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ArticleCourts must recognise disability test
The Employment Appeal Tribunal (EAT) has allowed an appeal against a claim of disability discrimination after the Employment Tribunal (ET) failed to recognise whether the claimant’s stress, anxiety and depression in the workplace could consider her disabled.The EAT found in Fathers v Pets At Home that the ET had erred ...
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ArticleRound-up of tax and legislation changes in summer 2014
Here is a round-up of legislative and tax changes announced this summer:The government published its draft Taxation of Pensions Bill, which provides further details about how people can access defined contribution pension savings flexibly from April 2015. The government confirmed that National Savings and Investments and HM Revenue and Customs ...
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ArticleWhat employers need to know about calculating holiday pay
In July, the Confederation of British Industry (CBI) warned that these costs could run into billions of pounds and could even bankrupt some organisations. Katja Hall, deputy director-general at the CBI, said: “Moving the legal goalposts in this way is unacceptable.“We need the UK government to take a strong stand ...
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ArticleEmployee benefits trusts closed to tax avoidance
A tribunal has closed a tax avoidance scheme which routed the profits of a tax advisory business through employee benefits trusts (EBTs). HM Revenue and Customs (HMRC) challenged tax deductions of almost £9 million which tax advisor John Dryburgh’s organisations, Scotts Atlantic Management and Scotts Film Management paid into EBTs.Employee ...
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ArticleUnmissable benefits tax keynote at EB Live
Delegates at Employee Benefits Live 2014 can find out all they need to know about the tax changes impacting benefits in a keynote session on 24 September.In the session titled ‘Business critical tax and legislation changes impacting benefits’, John Whiting (pictured), tax director at the Office of Tax Simplification (OTS), ...
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ArticleHMRC to withdraw employee benefit trust settlement opportunity
Employers that used an employee benefit trust (EBT) before 6 April 2011 must notify HM Revenue and Customs (HMRC) by 31 March 2015 if they wish to take advantage of the beneficial terms of the EBT settlement opportunity (EBTSO) to settle the resulting pay-as-you-earn (PAYE) and national insurance contributions (NICs) ...
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ArticleInvestec Bank wins £6m bonus claim
Investec Bank has won a £6-million bonus claim against two former employees.The High Court rejected the claim by Andrew Brogden, former head, and Robert Reid, deputy head, of its structured equity desk.The pair had claimed that their 2010/11 bonus had been pre-agreed in an oral contract with the organisation and ...
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ArticleGovernment launches review of taxation on travel and subsistence expenses
The government has launched the first stage of its review into the taxation of travel and subsistence expenses, which it announced in the 2014 Budget in March.The consultation follows the Office of Tax Simplification’s (OTS) report, Review of employee benefits and expenses: second report, which was published in January 2014.The ...
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ArticleBank of England consults on bankers' bonuses
The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have published two joint consultation papers aimed at improving individual responsibility and accountability in the banking sector.One of the consultation papers, Strengthening the alignment of risk and reward: new remuneration rules, include proposals for the introduction of new rules on ...
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ArticleEAT to hear three cases on holiday pay
The Employment Appeal Tribunal (EAT) is to hear three cases on holiday pay on 30 July.The hearing follows two recent decisions around holiday pay.In June 2014, the European Court of Justice (ECJ) ruled that an employee who dies with outstanding holiday pay should be paid this after their death.In May ...
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ArticleHMRC launches consultation on unapproved share schemes
HM Revenue and Customs (HMRC) has published a consultation on one of the Office of Tax Simplication’s (OTS) share scheme recommendations.Its consultation, Office of Tax Simplification review of unapproved share schemes: marketable security, looks at a recommendation made by the OTS in January 2014 that the government introduce the concept ...
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ArticleGovernment proposes halving deferred state pension increase
The government has proposed halving the deferred state pension increase rates from 6 April 2016.Currently, UK workers who reach the state pension age before 6 April 2016 will be able to defer their state pension and benefit from an annual increase of 10.4% on the deferred income.Under the proposals, anyone ...
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ArticleYachts, jewellery and clocks give rise to benefit in kind
The First-Tier Tax Tribunal has ruled that the use of yachts, jewellery and clocks ‘placed at the disposal’ of an employee gives rise to a benefit in kind.In the case, Gillian Rockall v HM Revenue and Customs (HMRC), Rockall and her husband were the directors and controlling shareholders of two ...
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ArticleObesity could be covered by anti-discimination law
Employers could be legally required to bear the costs of all necessary reasonable adjustments to accommodate the needs of severely obese employees after an opinion delivered by the Advocate-General of the Court of Justice of the European Union (CJEU).The opinion relates to the Danish case, Karsten Kaltoft v Billund Kommune, ...
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HMRC loses Rangers employee benefit trust appeal
HM Revenue and Customs (HMRC) has lost its appeal in the upper tier tax tribunal in the case around defunct Rangers Football Club plc’s use of an employee benefit trusts (EBT).In November 2012, the first tier tax tribunal ruled in favour of the Murray Group, which had owned the club ...
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ArticleEAT confirms compulsory retirement at 65 is justified
The Employment Appeal Tribunal (EAT) has confirmed that compulsory retirement at the age of 65 can be justified.More than seven years ago, the case Seldon v Clarkson Wright and Jakes raised a claim of age discrimination because Mr Leslie Seldon was forced to retire at age 65 from the law ...