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Employment Tax

Employment Tax

We aim to keep you updated with all the latest relevant information that will be important for your business.

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KPMG's Employment Taxes group helps organisations manage their payroll, benefits and expenses compliance risks as well as implement arrangements to reduce employment tax costs. In this section we aim to keep you updated with all the latest relevant information that will be important for your business.

If you want to know more, or would like us to consider any particular topics, please get in touch.

Articles

Applying the Apprenticeship Levy in Scotland

The Scottish Government announces details of the ‘Flexible Workforce Development Fund’ available to apprenticeship levy paying employers in Scotland.

Disguised remuneration: the Close Company Gateway and 2019 loan charge reporting

The draft clauses for future Finance Bill 2017-18, expected later this year, confirm the Government’s intention to introduce the Close Company Gateway and to impose a duty on taxpayers to provide information to HMRC relating to the 2019 loan charge 

Termination payments 

The release of the new draft clauses of the Finance Bill 2017-2018 heralds the curtailment of Foreign Service Relief (FSR) for termination payments from 6 April 2018.

Finance Bill 2017-19 reintroduces changes

The second of 2017’s Finance Bills has reintroduced all of the employment tax measures dropped before the General Election.

HMRC announces new settlement opportunity post-Rangers 

HMRC has announced a new settlement opportunity in the wake of the Supreme Court decision in Rangers.

PAYE penalties – 3 day easement extended

HMRC has confirmed it will continue with its risk-based approach to PAYE penalties for the 2017/18 tax year including the 3 day easement

Does the UK need a robot tax? 

Reports of the world’s first robot tax are slightly exaggerated, but the underlying problem is real and the UK will need to act soon.

First opinion of GAAR advisory panel published

The GAAR advisory panel has recently published its first opinion in a case of employee reward involving gold bullion. 

KPMG’s response to the call for evidence on the taxation of employee expenses

In response to HM Treasury’s call for evidence on the taxation of employee expenses we conducted an online survey of employers during the months of May and June. Combining the survey results with our own experience we have recently submitted our written response.

Examining the Taylor Review

A recent article for Tax Journal looks at the report’s recommendations and their employment law and employment tax implications.

HMRC’s Large Business team kicks off a second round of KYC reviews

HMRC’s Large Business team has recently launched a second round of KYC reviews, following on from its initial visits to some employers in 2014 and 2015.

Finance Bill and making tax digital deferred

Both the Summer Finance Bill (SFB) and the start date for Making Tax Digital (MTD) have been deferred.

Voluntary Payrolling of benefits provided via Optional Remuneration Arrangements

HMRC grants P11D concession for 2017/18

Taylor Review of modern working practices

We consider the implications of the Taylor Review of modern working practices on employment law and employment taxation.

The OTS has published an updated focus paper on the ‘Gig’ economy

Food for thought in advance of the publication of Matthew Taylor’s Review of Modern Employment Practices.

Time for a different approach on employer’s NIC?

Colin Ben-Nathan, Partner, KPMG UK, takes a look at the case for reform of employer’s NIC, and the ways in which it could be carried out.

Supreme Court finds for HMRC in Rangers EBT case

The Supreme Court, in a unanimous decision, has dismissed the taxpayer’s appeal in what became known as the “big tax case”.

What are your options? NCL Investments & Anor v HMRC

In the recent case of NCL Investments Limited & Anor v HMRC, the First-Tier Tax Tribunal found that the accounting expense relating to the grant of share options to their employees was deductible for corporation tax purposes. 

Annual reporting for employment-related securities

The Employment Related Securities (ERS) annual returns deadline has been extended to 24 August from 6 July following HMRC Online Services' IT glitch.

Subsistence allowances to lorry drivers

HMRC guidance introduces new conditions for subsistence allowances to lorry drivers to continue to be exempt from income tax.

We need your help! Call for evidence on the taxation of employee expenses

HM Treasury has published a call for evidence on the taxation of employee expenses. Please take our survey to help shape our response. 

Finance Bill 2017

Finance Bill 2017 completed its passage through the House of Commons and the House of Lords in April, on an accelerated timetable due to the upcoming general election, and received Royal Assent on 27 April 2017. As many had anticipated, a lot of the more complex measures have been dropped from the Bill after negotiations with the Opposition.

Impact of ‘hard Brexit’ on social security for internationally mobile employees

Could ‘hard Brexit’ cause social security difficulties for employees who work abroad?

Call for evidence on the taxation of employee expenses

The call for evidence on the taxation of employee expenses seeks to better understand how the relief is being used. 

Optional Remuneration Arrangements

The Finance Bill introduces legislation designed to remove the Income Tax benefits of Optional Remuneration Arrangements (OpRA). However, some question marks remain.

Draft Finance Bill 2017: Off-payroll working in the public sector: reform of the intermediaries legislation (IR35) 

The draft Finance Bill 2017 sets out the proposed new rules that will apply to public sector bodies hiring off-payroll workers via personal service intermediaries. 

Termination Payments – changes to Income Tax and National Insurance contribution (NIC) legislation

The Finance Bill contains significant changes to the taxation of termination payments which are due to come into effect from 6 April 2018. 

Draft Finance Bill 2017: Changes to disguised remuneration legislation 

HMRC have announced certain changes to their proposals to extend the disguised remuneration rules. The changes include some additional (and welcome) exclusions and other responses to concerns with the breadth of some of the earlier proposals. However, most of the earlier proposals are to be proceeded with in Finance Bill 2017. 

Spring Budget 2017

We need to change the way we tax work, says KPMG. Changes will need to be wide ranging and will go to the very core of the UK tax system.

Optional Remuneration Arrangements – what do the changes mean? 

Salary sacrifice rules coming in from April 2017 have generated a lot of scrutiny as firms seek to revise and refine their current offering. 

IFS Green Budget – Changes in work patterns and the Gig Economy

Interesting things are happening in the labour market, but nothing fundamental has changed. Yet. 

HMRC publish new guidance on ‘negative earnings’

The case of HMRC v Julian Martin introduced the concept of negative earnings. HMRC have now published their view following a UT decision. 

An update on the 'Gig Economy'

An update on the various strands of work currently ongoing in the 'Gig Economy'.

Dates for 'making-good' taxable benefits-in-kind

The dates for "making good" non-payrolled benefits-in-kind (BiKs) are to be aligned to 6 July following the end of the tax year in which the tax charge arises.

Off-payroll working in the public sector: Reform of the intermediaries legislation (IR35)

The draft Finance Bill 2017 sets out the proposed new rules that will apply to public sector bodies hiring off-payroll workers via personal service intermediaries.

Changes to the disguised remuneration landscape

HMRC have announced certain changes to their proposals to extend the disguised remuneration rules.

Simplifying PAYE Settlement Agreements

The Government is simplifying the administration of PAYE Settlement Agreements by removing the need to agree them up front and providing further guidance on what can be included.

Salary Sacrifice Arrangements - The tax and NIC treatment of Benefits-in-Kind (BIKs) when provided via a salary sacrifice arrangement

The income tax and NIC treatment of Benefits-in-Kind provided as part of a salary sacrifice arrangement is to be modified from 6 April 2017.

Is changing the IR35 rules really the answer?

The Government's decision to press ahead with reform to the off-payroll working (IR35) rules in the public sector from April 2017.

Autumn Statement 2016 - Employers overview

There were a number of updates from a people and pay perspective, following on from the latest round of consultations, together with the announcement of plans for further reviews and calls for evidence in 2017. From an employers' perspective, the main developments were centred around salary sacrifice, IR35, PAYE settlement agreements, and termination payments.

Tax, BEPS and your business

BEPS represents a fundamental change to the corporate tax landscape and it's effect will be felt across your whole business.

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