Reminder of recent UK changes to help you ensure that you're compliant
April is an exceptionally busy time of year for UK payroll personnel. This month, along with the tax year ending/beginning, there have been a number of changes that have come into effect. As UK payroll providers, our UK payroll specialists have noted some key changes this year. And along with official UK legislation publications we have compiled a summary of 5 key changes that UK companies must now be abiding, as of the beginning of this month (April 2017).
1. Assets made available to employees without transfer
The UK Finance Bill 2017 will include a detailed method of calculating the taxable value (cash equivalent) of an asset provided to an employee which is made available for private use. This means that employees will just pay tax for those days on which the asset is available for private use. This will provide clarity for both employers and employees. This measure has taken effect April 6th 2017.
2. Employer-arranged pensions advice exemption
As announced at Budget 2016 in the UK, the UK Finance Bill 2017 will include a new income tax exemption and National Insurance Contributions (NICs) disregard to cover the first £500 worth of pension advice provided or paid by an employer to an employee in a tax year. It will allow advice on both pensions and general financial and tax issues relating to pensions. This measure has taken effect this month.
3. Legal support
As announced in the UK at Autumn Statement 2016, the UK Finance Bill 2017 will ensure that all employees (or former employees) called to give evidence, for example, at an inquiry, will be able to receive legal support funded by their employer tax-free. This measure has also taken effect earlier this month.
4. Making good
As announced at the UK Autumn Statement 2016, the UK Finance Bill 2017 will align the dates for making good on benefits-in-kind which are not accounted for in real time through PAYE (benefits-in-kind which are not payrolled). The date for making good on non-payrolled benefits-in-kind will be July 6th after the end of the tax year in which the benefit-in-kind is received. The taxable value of the benefit-in-kind will be reduced or removed if making good takes place by that date. The current rules will continue to apply to a benefit-in-kind chargeable to tax in 2016-2017 or earlier years. The change will have effect for making good on a tax liability that would arise in tax year 2017-2018 or after. Further details, including an outline of the current law, can be found here: Dates for ‘making good’ on benefits-in-kind.
5. Company car and van taxation
New rates are available for the appropriate percentage, used to calculate company car taxation, which has taken effect from 6th April 2017. The van benefit charge, car fuel benefit charge and van fuel benefit charge has increased from 6th April 2017. The new rates are available on GOV.UK.
PaycheckPlus UK Payroll Providers
Here at PaycheckPlus our UK payroll specialists provide a complete tailored payroll management service that ensures compliance with the most up to date legislation. By providing a custom service tailored to each of our client’s needs, our clients and their employees can be more efficient, more dynamic and can focus on profits, while having peace of mind that they’re payroll compliant. We also provide many additional services including payroll consultancy, payroll auditing, multinational payroll services and also a payroll cover service, which acts as a backup service that ensures continuity in the event of client payroll member absence.
To ensure payroll compliance and for expert support contact PaycheckPlus now.
PaycheckPlus – Payroll Excellence