corporate finance 61 Employers take note


A raft of changes have been introduced in payroll and benefits reporting, writes tax director Holly Bedford-Bell


£8,500 lower earnings threshold


The £8,500 threshold for taxing benefits-in-kind was abolished from April 6, 2016. Employers will need to report all taxable benefits- in-kind on form P11D, unless they intend to use ‘voluntary payrolling’. Class 1A NIC will be payable on all benefits-in-kind, regardless of the level of an employee’s earnings.


Voluntary ‘payrolling’ benefits


From April 2016 employers may deduct the tax due on benefits- in-kind through payroll rather than disclosure on a P11D. Initially employers will be allowed to payroll four benefits-in-kind:


• cars; • car fuel; • private medical insurance; and


• subscriptions, eg gym membership.


Employers need to register with


HMRC before the beginning of the tax year to join the new scheme.


P11D dispensations abolished from April 2016


In the past, employers who paid or reimbursed business expenses to employees, had to report these on form P11D unless the employer had in place a ‘P11D dispensation’ with HMRC . If reimbursed business expenses were included on an employee’s P11D, they had to then claim tax relief from HMRC.


From April 2016, P11D dispensations are abolished and employers do not need to complete form P11D where the employee is entitled to tax relief for the reimbursed business expenses. This means that employers will need to determine the correct tax treatment of the expenses they pay to their employees. Employers must continue to keep records of amounts paid to employees.


Employers who pay scale rates can


Leumi ABL supports Liberty House Group with growth capital


As the UK steel industry continues to generate headlines, Leumi ABL, which has one of its bases in Reading, has supported Liberty House Group with a £20 million asset-based lending facility comprising invoice discounting and stock finance.


The facility will be utilised by Liberty Tubular Solutions and Liberty Distribution to deliver ambitious growth plans which are already gathering pace.


Liberty Tubular Solutions and Liberty Distribution Divisions are leading UK manufacturers, distributors and suppliers of steel tubing and specialist tubular components to the automotive and aerospace industries. They are part of Liberty House Group, part of an international privately-owned business specialising in metals


trading and the manufacture and distribution of steel and advanced engineering products which employs circa 3,000 people globally and has a current turnover of approximately $7 billion.


Sanjeev Gupta, executive chairman at Liberty House Group, commented: “Liberty had access to key senior personnel at Leumi throughout the process which meant the financing was concluded in good time and in line with expectations, allowing us to move forward with our exciting plans for the business.”


Jonathan Hughes, regional sales director at Leumi, added: “We are delighted to support Liberty House Group at a time when the state of the UK steel industry is very much in the spotlight.”


Details: leumiabl.co.uk THE BUSINESS MAGAZINE – THAMES VALLEY – JUNE 2016


either use HMRC published scale rates or apply to continue to use recently agreed bespoke rates.


Statutory exemption for trivial benefits


From April 6, 2016, trivial benefits costing up to £50 per head will be exempt from tax and NIC. If the item costs more than £50, is cash or a cash voucher or is contractual or linked to an employee’s employment performance, the whole benefit is taxable.


Directors of close companies are limited to receiving a total of £300 of trivial benefits tax-free per tax year.


NIC employment allowance


From April 2016 the NIC employment allowance, which reduces the annual employer’s NIC bill, has increased from £2,000 to £3,000. However, companies where the director is the sole employee will no longer be able to claim the allowance, which will impact many personal service companies.


Real time information (RTI)


Micro employers (employers with nine or fewer employees)


NatWest pledges to help businesses export


NatWest has pledged to help at least 15,000 UK businesses export their goods or enter overseas markets by 2020. In support it will proactively work with UK Export Finance (UKEF) to provide export finance to help companies secure £2.5 billion of overseas contracts within the next four years.


With British goods and services in demand around the world, NatWest’s pledges will support the Government’s Exporting is GREAT initiative, which aims to help 100,000 businesses start trading overseas by 2020.


Beyond its main pledges, NatWest will deliver regional workshops for businesses across the UK, highlighting specific growth opportunities; working closely with UKTI and UKEF to make it easier for businesses to apply


for schemes and secure funding for exporting; and in particular it will encourage and support women in business in their efforts to expand and grow business overseas.


Alison Rose, CEO of commercial and private banking at NatWest, said: “Businesses trading only in Britain limit their revenue potential to the UK, but each new overseas market represents a new possible source of income. Among other benefits, it also allows companies to spread risk across different business environments.“


Lord Price, minister of state for trade and investment, said: “The Government and the banking sector share a joint aim – to help budding exporters realise their dreams of building a global business.”


businessmag.co.uk


enjoyed relaxations under the RTI rules until April 5, 2016. These employers are now fully within the RTI rules and penalties will now apply to all size companies.


The tax team at HMT led by Holly Bedford-Bell provide specialist advice to shareholders, management and companies on acquisitions, disposals and corporate restructurings.


Details: Holly Bedford-Bell hbedford-bell@hmtllp.com 01491-579740 hmtllp.com


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76