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PAYE and pensions

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·       The Income Tax (Travel Expenses of Members of Local Authorities etc) Regulations, SI 2016/350, provide definitions of ‘relevant authority’ and ‘qualifying payment’ for the purposes of the new exemption from income tax for travel expenses paid to local authority councillors, including journeys between home and council offices, effective from 6 April 2016. Primary legislation for the exemption was introduced in Finance (No 2) Act 2015.

·       The Income Tax (Pay As You Earn) (Amendment) Regulations, SI 2016/329, specify the lump sum payments made to individuals under the pension flexibility rules which employers are required to report to HMRC for the purposes of applying the reduced money purchase annual allowance with effect from 6 April 2016. The regulations also remove the need for unemployed individuals to provide HMRC with a P45 when claiming a repayment, and permit employers to use electronic means to provide P45 details to employees and notify HMRC of multiple PAYE schemes.

·       The Registered Pension Schemes (Provision of Information) (Amendment) Regulations, SI 2016/308, specify the information that scheme administrators must provide to members for the transitional year 2015/16, in relation to the tapered reduction in the annual allowance which affects individuals with income over £150,000 from 6 April 2016. A pension savings statement is only required if the member’s pension input amounts exceed either £80,000 for tax year 2015/16 as a whole, or £40,000 for the period from 9 July 2015 to 5 April 2016. Following consultation on draft regulations, there will be no requirement to provide a statement to members whose pensionable earnings exceed £110,000 in a tax year.

Issue: 1301
Categories: News