Employees

Tax planning for loving couples

OTS issues second report on employee benefits and expenses

R J Herbert Engineering Ltd (TC3132)

P Boyle (TC3103)

The taxpayer is a director and 50% shareholder in a limited company operating from one office and a 50% partner in another similar business, trading from a different office three miles away

HMRC have warned of another problem with their business tax dashboard, following the recent month eight error.

The latest error means the dashboard is not showing the correct liability position for tax months nine and ten of some PAYE schemes. Employers may find they are being told they owe more tax than expected for the affected months.

CRC v O’Rorke, Upper Tribunal (Tax and Chancery Division)

An employee was loaned £250,000 by an employee benefit trust, ostensibly to purchase an investment property. On that basis, no P11D was prepared, but it has now come to light that £50,000 was retained as savings

HMRC’s fixation with non-payroll labour and false self-employment

Crownfold Ltd (TC3079)

Employees with outstanding class 2 National Insurance contributions (NICs) from previous years may find the debt included in their PAYE code for 2014/15.

HMRC can collect overdue NICs by adjusting a taxpayer’s code, starting from April. Notices of coding will be issued between January and March.

Those with class 2 debts will have received a letter from the tax authority earlier in the year to request payment and warn that the sum could be recouped through the taxpayer’s PAYE code from April 2014 or passed to a private debt collection agency for recovery.

Recent changes to the employment-related securities guidance