Taxation update.

As I am sure you are all aware there has been a lot of noise of late surrounding IR35 and the private sector. There has also been a few other recent changes that may have been missed though.

New National Insurance number notification

HMRC have recently changed the format of the letter that they issue to individuals to inform them of their National Insurance number.

This letter will be automatically sent out to individuals on their 16th birthday, or to any individual who has requested this information.

This letter will no longer be dated as there is no expiry date on a National Insurance number. However it is important to note that this letter is NOT proof of address or identification so please bear this in mind when obtaining right to work documentation from potential candidates.

Termination Payments

Changes to such payments were implemented in April 2018 which states; all payments in lieu of notice are chargeable to income tax and class 1 NIC. This applies regardless of whether or not the payments are contractual in some way.

In short, all such payments should go through payroll.

Expenses reporting

The deadline for this is fast approaching (July 6th), legislation having changed from the 6th April 2016. This legislation affects any expenses that are exempt from taxation. 

Employers no longer need to report this on the end of year return P11D. 

As I am sure you would agree this is great news for employers as it alleviates some of the administrative headache however, an adequate level of record keeping will need to be done to support HMRC so the reporting aspect isn't completely removed in this area.

If you are unsure of this or any other legislation, please feel free to call us on: 

0333 121 2001 for a no obligation conversation.