All Tax and legislation articles – Page 36
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AnalysisThe legal minefields of tax-efficient benefits
If you read nothing else, read this:Employers should consider the business reasons behind their reward policies.Employers must be aware of any tax or national insurance consequences of providing benefits.They should include any tax considerations when planning and budgeting.Once they are certain that they know what each policy is intended to ...
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ArticleCourt rules travel expenses are subject to tax
Reed Employment has lost an appeal against HM Revenue and Customs (HMRC), in which it contested up to £158 million in tax payments relating to travel expenses for the temporary workers it employed.The case covers the period between 2001 and 2006 when the employment agency aimed to make non-taxable payments ...
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ArticleTribunal rules on valuation of restricted shares
The First-Tier Tribunal has ruled that restrictions should be taken into account when shares issued to employees are valued for tax purposes.In the case of Sjumarken v HM Revenue and Customs [HMRC], Lars Sjumarken was employed by BNP Paribas as an investment banker, in charge of BNP’s EU investment banking ...
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ArticleGovernment consults on pension freedom charges
The government has launched a consultation on early exit charges surrounding the pension freedoms that came into effect in April.The consultation will examine whether exit charges should be capped for those aged over 55 years that are planning to withdraw money from their pension pots.It will also look at how ...
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ArticleHigh Court sides with BBC to cap pensionable pay
The BBC took the decision to introduce a 1% cap on increases to pensionable pay to its three DB schemes to cut its pension liabilities. But the approach that it took to implement the change, requiring members to accept the cap or receive no pay rise, or alternatively to cease ...
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ArticleConsultation launches on gender pay gap reporting
The government has launched a consultation to establish the details of its plans to make it complusory for large employers to publish the average salaries of male and female staff. The consultation will also look into what information from employers will be published, as well as where and when.Plans for ...
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ArticleGovernment to consult on pensions tax relief
Summer Budget 2015: Chancellor George Osborne has announced that the government is to consult on a reformation of pensions tax relief.It will publish a green paper shortly setting out the various options, which range from fundamental reforms, for example moving to a system which is tax exempt like individual savings ...
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ArticlePersonal allowance increases to £11,000
Summer Budget 2015: The tax-free personal allowance will increase to £11,000 a year, Chancellor George Osborne announced during his Summer Budget speech today (8 July).In 2016-17, employees who earn up to £11,000 a year will not pay income tax. The new tax-free personal allowance threshold represents an increase of £400. ...
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ArticleStay up-to-date with the Budget
Chancellor George Osborne will unveil the Summer Budget at 12:30pm today (8 July). Make sure you stay tuned to the Employee Benefits website for the latest news and updates following the announcement.Employee Benefits will be covering all aspects of the Budget impacting employee benefits, such as pensions, healthcare, pay and ...
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ArticleHigh Court closes two firms over pension savings scam
The High Court has wound up two organisations for operating an £11.9 million misleading pensions liberation scheme.Clients were encouraged to use their pension savings to buy shares in Liverpool-based KJK Investments, which would then increase by 6% in value each year.The 209 clients were also told to obtain a loan ...
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ArticleCompensation for discrimination claim not taxable
Compensation received by an employee to settle a discrimination claim is not taxable as earnings, a tribunal has ruled.A v The Commissioners for HMRC involved a dispute over whether a payment of £600,000 made under a compromise agreement should be taxed as “earnings” or whether it could be paid tax ...
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ArticleCompliance developments impacting benefits in May
The Pensions Regulator (TPR) issued its first four escalated auto-enrolment penalties, which range from £50 to £10,000 a day depending on the severity of the breach.The Employment Appeal Tribunal (EAT) ruled that employers are not always required to make reasonable adjustments and create the ideal job for an employee returning ...
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Article?Redundancy near pensionable age could be age discrimination
The Employment Appeal Tribunal (EAT) has returned a case to a tribunal for a re-hearing to consider whether redundancy dismissal, where the timing meant an employer avoided significant pension costs, could amount to age discrimination. In the case of Sturmey v Weymouth and Portland Borough Council, it is being considered ...
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ArticleQueen's Speech confirms legislation on tax and NI
The Queen has confirmed that legislation will be brought forward by government to ensure there are no rises on income tax, value-added tax (VAT) or national insurance for five years. The move, which was first announced in the Conservative Party’s election manifesto, was one of the measures announced in the ...
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ArticleBritish Gas appeals holiday pay decision
The appeal comes from the employer and its law firm Eversheds after an employment tribunal ruling in March found that commission must be included when employers calculate holiday pay.In the case of Lock v British Gas, the tribunal ruled that the Working Time Regulations should be read to ensure commission ...
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Article
Developments impacting benefits in April
Exceptions meaning employers will not be not required to auto-enrol individuals who are leaving employment, staff who cancel membership of a pension scheme before automatic enrolment and those with tax-protected status for existing pension savings have been proposed under government draft legislationThe Employment Appeal Tribunal (EAT) ruled that type-two diabetes, ...
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ArticleJust 1% plan to spend entire pension pot on luxuries
Just 1% of staff aged 50-75 plan to spend all their pension pot on luxuries, according to research by PricewaterhouseCoopers (PWC).The study, which surveyed 1,200 UK adults aged between 50 and 75 years, also found that just over a quarter (27%) of respondents intend to spend some of their retirement ...
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ArticleLegislation and tax changes that took effect from 6 April 2015
On 6 April 2015, a number of changes to tax and legislation impacting employee benefits came into effect.The full list of changes are:Pensions:Individuals over the age of 55 now have access to their defined contribution (DC) pension savings in full. Employees can take their savings as cash, enter drawdown or ...
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ArticleEAT rules controlled type 2 diabetes is not a disability
The Employment Appeal Tribunal (EAT) has ruled that type 2 diabetes which is controlled by diet and does not have a substantial adverse effect on an employee’s day-to-day activities does not amount to disability discrimination.In the case of Metroline Travel v Stoute, the claimant was a bus driver who suffered ...
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OpinionJacqueline Reid: Will independent governance committees bridge the governance gap between trust and contract-based pensions?
Following increased government scrutiny of defined contribution pensions, providers of contract-based pension arrangements will have to introduce and maintain independent governance committees (IGCs) from April 2015. These changes apply to personal or stakeholder pensions run by firms regulated under financial services legislation but not to occupational trust-based schemes.In a trust-based ...