EMPLOYMENT TAXES

HMRC is seeking views on a possible change to the PAYE system to allow closely connected employers to be treated as a single entity for PAYE purposes.

Question I am the CEO of a rapidly growing company. All the shares are currently held by me and my two co-founders. We are hopeful that within a couple of years our company will be sufficiently profitable either to be sold or to be floated on...

David Cohen answers a query on tax-efficient share schemes.

HMRC is reminding employers that from April 2012 they may be asked to provide security where there is a risk of deliberate non-payment of PAYE tax and NICs. HMRC can already request a security for VAT.

The proposed treatment of disguised remuneration for national insurance contributions purposes would impose ‘impossible and unreasonable obligations’ on employers, according to the ICAEW Tax Faculty.

HMRC has published an updated list of scale rates for expenses payments that can be made without deduction of tax to employees travelling outside the UK.

Draft PAYE regulations will be published for consultation in the autumn, HMRC said as it published a summary of responses to its December 2010 consultation Improving the operation of PAYE: Collecting Real Time Information.

HMRC has reminded employers paying PAYE tax and NICs electronically that their cleared payment must reach HMRC’s bank account by 21 October, because 22 October falls on a Saturday.