This month’s top technical stories on ICAEW Insights include new guidance on mini-umbrella companies, information on repaying Bounce Back Loans and new powers to ban directors who dissolve companies to avoid repaying government support.
Coronavirus: Employment taxes
ICAEW insights, technical guidance and news updates on tax measures affecting UK employment taxation during the COVID-19 pandemic.
Employment tax expert Kate Upcraft is sharing practical support on changes to the national minimum wage regulations, current easements to benefits-in-kind for employees and CJRS compliance in an upcoming Tax Faculty webinar.
The government has published the National Insurance Contributions Bill, which legislates reliefs for employers of veterans and those operating in Freeports, as well as for the self-employed isolating due to COVID-19. The Bill will also enable upcoming changes to the DOTAS scheme to apply to national insurance avoidance.
The pandemic is driving an increasing number of employees to work across international borders - a trend that presents a host of complex challenges and opportunities.
This month’s top technical stories on ICAEW Insights include news on the fourth self-employed grant, new EU sustainability disclosure rules and how auditors can report on irregularities, including fraud.
Employees working from home due to the coronavirus pandemic can continue to claim tax relief on costs not reimbursed by their employer, but a new claim will need to be made for the 2021/22 tax year, HMRC has confirmed.
Highlights from the broader tax news week ending 31 March, which includes: HMRC repackaging its guidance on tax implications of cryptocurrencies and rate change for COVID statutory sick pay rebate scheme.
Highlights from the broader tax news week ending 24 March, which includes: new support on the tax treatment of paying employee transport costs due to COVID-19, an error in CWG5 and a reminder of self-assessment payment deadline.
24 February 2021: This month’s top technical stories on ICAEW Insights include updates on self assessment penalties, IR35 changes and a major change to the government’s Kickstart Scheme.
10 February: ICAEW’s Tax Faculty has urged HMRC to confirm whether coronavirus antigen tests paid for by employers will continue to be exempt from income tax and national insurance after 5 April, and to clarify guidance on the difference between antigen tests and antibody tests which are not exempt.
10 February 2021: Respected tax authority Rebecca Benneyworth has written two new TAXguides offering valuable insights into the key issues facing agents at the start of 2021 and exploring what business structure has the lowest tax burden.
7 January 2021: As HMRC is resisting calls for an easement on self assessment late filing penalties, ICAEW’s Tax Faculty outlines the options available to taxpayers and agents who will have difficulty filing or paying.
18 December 2020: Employees that joined a cycle-to-work scheme on or before 20 December 2020 will not be liable for income tax benefit-in-kind charge, reveals Treasury.
19 November: Legislation will come into force on 8 December providing a temporary exemption from income tax and national insurance on coronavirus antigen tests provided to employees.
10 November 2020: Wales introduces support to remove the financial disadvantage to care workers of staying away from work due to coronavirus. However, the guidance gives rise to numerous questions concerning eligibility, calculations and claims.
Updated 15 October: Employees required to work from home can have a £6 per week or £26 per month allowance paid tax-free by employers or, during the pandemic, can claim a deduction from earnings for this allowance, HMRC has confirmed.
28 September 2020: The employee benefits-in-kind (BiK) regime is not fit for purpose for a post-COVID world ICAEW has told HMRC.
10 July: HMRC has confirmed that equipment to protect employees from coronavirus is non-taxable, but reissued guidance suggests that tests purchased by staff and reimbursed by employers may be subject to tax.
3 Jul 2020: An ICAEW poll has found that accountants consider a cut in VAT rates to be the most effective way of boosting the UK economy following the coronavirus crisis.
30 June: HMRC’s latest employer bulletin contains several reminders to stop firms falling behind with standard obligations during the coronavirus pandemic, such as suffixing “2013” to the reference when paying 2019/20 Class 1A NIC.