Income Tax

HMRC’s Employment Income Manual states that “PAYE is not generally due on a non-transferable store gift voucher.” However, this does not mean no income tax will be due

The original director of a business is now over the retirement age and he is under pressure from a new director and co-shareholder to retire. A compensatory payment of £30,000 has been mentioned

F Weerasinghe (TC2542)

The Office of Tax Simplification’s proposals for pruning unapproved share schemes

Employers and tax agents can now report end-of-year expenses and benefits electronically, using a new set of online forms. The service is likely to be most useful for small and medium-sized employers when submitting their employees’ expenses and benefits information, said HMRC.

Only two forms are available – with an equivalent for agents to use on behalf of clients – but more are planned. Web users can access currently:

HMRC claim to class 4 liability “on shaky foundations”, says Baker Tilly partner

L Meynell-Smith (TC2531)

N Coxon (TC2530)

C Rawcliffe (TC2529)

It is time to reconsider the taxation of life insurance bonds

HMRC and Scotland’s government have agreed a memorandum of understanding for a Scottish rate of income tax.

The document sets out the arrangements for the implementation of the rate, describing each administration’s respective responsibilities in relation to establishing and operating it.

The Scottish rate will begin from a date to be set by the UK government and is expected to be April 2016. It will be administered by the Revenue as part of the UK-wide income tax system and will apply to non-savings income.

Nap Anglia Ltd (TC2579)