Employee share schemes have their own reporting regime called ERS online, which we outlined in our newsletter on 9 June 2016. The first year for which annual reports had to be submitted using ERS online was 2014/15.
News & Updates
Limited companies, who are registered as CIS sub-contractors without gross payment status, will have CIS tax deducted from their invoices. Where the company runs a payroll the CIS tax should be first off-set against any PAYE due, making the declaration and claim on the Employer Payment Summary (EPS) each month.
A tax claim or election should be made by the taxpayer it applies to, or in certain cases by the taxpayer’s personal representatives. This is normally achieved by attaching the claim to the taxpayer’s tax return.
Accountants are often asked whether a SA tax return is really necessary, particularly where all the taxpayer’s income is fully taxed under PAYE. The correct answer is that a tax return should not be necessary for such a taxpayer, unless he also has capital gains or child benefit to declare, or his income is over £100,000.
The rules for valuing a benefit in kind provided by way of a salary sacrifice changed on 6 April 2017, but not many employers are aware of the implications as there has been very little publicity by HMRC.
Lots of people get confused about the VAT treatment of expenses which are recharged to customers. The rule to remember is; all recharged expenses carry VAT, unless the item is a disbursement.