The Chancellor has finished delivering the first Autumn Budget of its kind. It was pleasing to see some progress in the drive to go electric, as well as future promises to address employee travel and reimbursement arrangements.
From April 2018, there will be no taxable benefit in kind (BIK) where employers provide staff with free charging facilities for electric and hybrid vehicles. Currently, where an employer allows an employee to charge their own vehicle at their place of work, a taxable benefit arises when the vehicle is used for private purposes – such as work to home commuting.
It was up to the employee to keep a log of the electricity provided by the employer, which should then be included on the P11D form at the end of the year. Whilst the Chancellor’s announcement today presents a lower tax bill and cost saving for the employee, it may perhaps also represent a further incremental encouragement towards alternative cars, which are not petrol or diesel powered.
It was not only vehicles that came under the spotlight for employees this time around. The Government has released plans for a consultation during 2018 that examines the taxation of training costs. The Government will consult in 2018 on extending the scope of tax relief currently available to employees and the self-employed for work-related training costs. Whilst at this stage the extent of the easement is not known, it is hoped that the consultation next year will extend the current restrictive regime.
Furthermore, from April 2019 it is intended that employers will no longer be required to check receipts when making payments to employees for subsistence using benchmark scale rates. This is a welcome relaxation under which employers will only be required to ensure that employees are undertaking qualifying travel.
If you have any questions surrounding today’s Budget, or any other aspect of employment taxation, contact Wilkins Kennedy to see how we can help.
HMRC have this week released initial guidance on eligibility for the UK Government’s new “Job Retention Bonus” and the process to claim. The scheme provides employers with payment of £1,000 for each furloughed employee who is retained following the cessation of the Government’s Coronavirus Job Retention Scheme (“CJRS”) on 31st October 2020. Further detailed guidance is expected to be released by the end of September 2020.
Many businesses are now planning for a return to work as the UK Government further lifts restrictions on the movement of people and the re-opening of businesses, with a phased return to “normality”. What will the new normal look like, especially for those involved in providing Professional Services?
The Chancellor has announced a number of measures aimed at mitigating the impact of the COVID-19 pandemic, with a commitment to stimulate consumer spending and encourage job creation through a government plan for jobs. The stark backdrop is one of some nine million jobs furloughed, comprising a quarter of the UK workforce.
Details of the amendments to the current Job Retention Scheme (JRS) were published on 12 June 2020. The rules are effective from 1 July and reflect the desire, and indeed need, for employers to start to re-engage their employees and get back to business. There are two over-riding key points...
During these uncertain times, you may have taken advantage of the range of supporting financial packages introduced by the UK Government. Whilst these packages are likely to offer extremely important cash injections to your business, it is important to consider the impact that such funding could have on your R&D tax relief or tax credit claims - Past, Present and Future.