Key points from the Chancellor's Autumn Statement 2014
Over the last parliament the government have tried to make the tax system less complex with mixed success. One helpful measure was the creation of an “Office of Tax Simplification” (OTS) which has been tasked with looking at various tax rules to see if they can be improved.
The Autumn Statement contained a number of measures suggested by the OTS. We await further details from HMRC and await legislation, but measures include:
From April 2015 trivial benefits in kind costing less than £50 will be exempt from PAYE and NIC costs. This may make employers more willing to issue small gifts to employees.
On a similar note, there is an ongoing review into the way travel and subsistence payments are taxed and relieved. Any easing of the administrative burden relating to the record keeping and taxation of travel and subsistence payments should be welcomed by employees and employers.
From April 2016, it has been announced that the £8,500 threshold below which employees do not pay income tax on certain benefits will be removed and replaced by new exemptions for carers and ministers of religion. The £8,500 limit applied very infrequently and the vast majority of employees will see no changes – but this is welcome news for those eligible for the exemption.
The 2015 Finance Bill is expected to contain legislation simplifying the taxation of corporate debt – especially in cases where companies are distressed. This should be a welcome end to situations where distressed companies can suffer tax charges on debts written-off.
For more information or to discuss anything in more detail, please contact matthew.goodchild@shorts.uk.com
Scott Burkinshaw
Scott is Tax Partner at Shorts, specialising in providing strategic corporate and personal tax advice.
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