PAYE update 15 March 2013 - shares, EBTs, IR35 & RTI

March 15, 2013 2013

update

It's Friday (thank goodness Smile) and us PAYE folk are all busy what with year-end stuff and RTI and whatever so let's just do a brief update on some relevant employment tax issues for now so that we can all get on with what we need to do and enjoy some of the weekend when it comes.

Shares

The latest issue of the Employment-Related Shares & Securities Bulletin was issued by HMRC this week and is worth a read if you offer any sort of share plan to your employees. Click here to get the bulletin.

There's more in this bulletin around the draft legislation published in December and HMRC's position on approving schemes changed in anticipation of this legislation being confirmed. HMRC also clarify a change in their stance on s.431 elections in a CSOP (Company Share Option Plans) as well as further proposed changes on SAYE schemes.

Employee Benefit Trusts

A number of assessments have been issued by HMRC in recent weeks around the use of EBTs.

We suspect this is simply to protect HMRC's position in view of the ongoing Rangers FC EBT case which could rumble on for years so that HMRC are not time barred from collecting the extra tax/NI if they ultimately win the Rangers case.

Anyone in receipt of such an assessment should speak to the EBT provider or the advisers who helped set up the EBT arrangement in the first place. Otherwise give us a call, we would be happy to help.

IR35

Confusion is mounting around the proposed changes to IR35 announced in December and which will come into force on 6 April (subject to anything else to come out of next week's budget) around the inclusion of Directors and other Office Holders.

The confusion centres around how existing legislation around Office Holders will work with new IR35 legislation and whether there will still be conflicting rules and guidance on this when the new rules bed in.

If the Government / HMRC can't even implement what should be a simple change effectively, maybe it is time to scrap IR35 and start again? Maybe the next few weeks will clarify things.....

RTI

C'mon, RTI is such big news just now it would have been wrong to ignore it in this blog. Wouldn't it ??! Undecided

Exactly three weeks to go and the hysteria is mounting. Look at any finance forum or tax magazine just now and the questions and concerns are flooding in and this is representative of client queries we are having as well.

Now that most employers have sorted out their data (said in hope possibly ?!!), most of the questions cropping up are around the day-to-day practicalities of operating payroll in real time. Popular themes include

- The application of RTI for directors who take irregular or small salaries

- The requirement to include expenses paid through payroll whether taxable or not and irrespective of whether covered by a dispensation

- The timing issues around third party information e.g. share plans and expats

- The RTI penalty provisions

As ever, if you have any immediate concerns on RTI give us a call. Don't just ignore it as we will be RTI'ing before we know it.

Have a good weekend all Smile

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