Anna’s Accountancy Alerts – Week 12 (21st – 27th June 2021)

Female Manager Wearing Mask in Office

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The Treasury has launched a review into the effectiveness of the Office of Tax Simplification (OTS)

This is the independent body responsible for helping to make the UK tax system simpler and easier to interact with for taxpayers.

In a new call for evidence, the Treasury said that whilst the review is internal, it is keen to gather the views that stakeholders, businesses, tax professionals and academics have on the OTS.

The Treasury is seeking views on the resourcing, funding and governance of the OTS; the OTS’s relationship with HMRC; the OTS’s work to date; the impact of the OTS’s work on the government’s approach to tax simplification; and steps that could be taken to enhance the effectiveness of the OTS.

The call for evidence also asks stakeholders whether they believe the OTS is sufficiently independent from the government, and whether it has the correct breadth of expertise on its board.

The Treasury stated that the outcomes arising from the review will be published in the autumn of 2021.

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Forms P11D – reporting employee benefits due 06/07/21

Employees pay tax on benefits provided as shown on the P11D, generally via a PAYE coding notice adjustment or through the self assessment system. Some employers ‘payroll’ benefits and in this case the benefits do not need to be reported on forms P11D but employers should advise employees of the amount of benefits payrolled.

In addition, regardless of whether the benefits are being reported via P11D or payrolled the employer has to pay Class 1A National Insurance Contributions at 13.8% on the provision of most benefits. The calculation of this liability is detailed on the P11D(b) form. The deadline for payment of the Class 1A NIC is 19th July 2021 (or 22nd for cleared electronic payment).

See link: 

https://www.gov.uk/employer-reporting-expenses-benefits/reporting-and-paying

Employment status

In a recent case the First-tier Tribunal (FTT) ruled a taxpayer’s status was self-employed.  This was mainly due to the lack of control and supervision.  If there is any doubt over the status of someone who works for you then use HMRC’s status tool.  Also keep a copy of the results and supporting documents.

See link:

https://www.gov.uk/guidance/check-employment-status-for-tax

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