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.
In his speech yesterday, Chancellor Philip Hammond demonstrated his commitment to the principle of the Spring Statement as a low-key event, at least in terms of tax and public spending announcements.
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There’s no better time to be nice to staff and customers than at Christmas. But the tax man is less generous than Santa and there are certain clauses you need to be aware of before you start popping £50 notes into envelopes to hand out over mulled wine round the office tree.
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If you hire any staff, and you issue them with a payslip, you might want to familiarise yourself with an important update in legislation, effective from April 2019.
HMRC currently has its spotlight on staff and business entertaining, just in time for the summer season, when lots of businesses may be thinking about holding client functions or staff away days.
With the 2017/18 tax year now over, it is time for employers to turn their attention to reporting the expenses and benefits that they have provided to their staff on forms P11D. The deadline for reporting to HMRC is 6 July and now there is a new area to take into consideration.
The Apprenticeship Levy came into force on 6 April 2017 with the aim of creating three million new apprenticeships by 2020. But instead of increasing numbers, it seems that apprenticeship employment has dropped since the introduction of the Levy. Is this a case of businesses simply internalising the training process, or is the Levy proving to be a deterrent?