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CTG Newsletter – 19 August 2016

Salary sacrifice for the provision of benefits in kind

HMRC has published a consultation exploring the potential impacts on employers and employees should the Government decide to change the way the benefits code applies when a benefit in kind (BiK) is provided in conjunction with a salary sacrifice or flexible benefit scheme. These proposals form the main body of a move to limit the range of BiKs that attract income tax and National Insurance Contributions (NICs) advantages when they are provided as part of salary sacrifice and flexible benefit arrangements. Payroll Giving will not be affected by this change. The deadline for responses is 19 October 2016 and further information is available here.

Strengthening tax avoidance sanctions and deterrents

HMRC has published a consultation on proposals to strengthen sanctions and deterrents for enablers of tax avoidance schemes. The intention is to further decrease tax avoidance by creating disincentives for those promoting schemes or benefiting from others’ avoidance of tax. HMRC is proposing to broadly define the word enabler, encompassing more than just those who design, promote and market avoidance. It will include anyone in the supply chain who benefits from an end user implementing tax avoidance arrangements and without whom the arrangements as designed could not be implemented. However, it also provides safeguards for those who are within that definition but are unaware that the services they provide are connected to wider tax avoidance arrangements. The deadline for responses is 12 October 2016 and further information is available here.

Scottish Government Water and Sewerage Charges – Charity Exemption Scheme

In January 2015, Scottish Government introduced a new scheme to assist charities and Community Amateur Sports Clubs (CASCs) with the payment of water and sewerage charges. Charities with an annual income of less than £200,000 no longer need to pay charges, while charities with an annual income between £200,000 and £300,000 pay a reduced charge. The new scheme increases the number of charities that are eligible for exemption or for a reduction in charges although there are some exemptions. Further information including a detailed briefing note by OSCR is available here.

HMRC Charity Tax Forum

CTG represents the interests of its members at HMRC’s Charity Tax Forum, which meets every 3-4 months. The next meeting is at the start of September and we would welcome feedback from members on any issues you would like us to raise on your behalf. CTG Chairman John Hemming has just been sent a provisional invitation for a meeting with the new Minister responsible for charity taxation later this year and this is your opportunity to help influence these representations.

CTG Newsletter Archive

Have you been away from the office? If so you can catch up on CTG’s recent newsletters below: