HLAS

As mentioned earlier, the HMRC rate of interest on beneficial loans is highly attractive compared to the Bank of England Base Rate of 5.25% and the higher rates charged by banks for unsecured loans. When loans are made to participators (generally shareholders) of a close company, there is a potential special tax charge on the company for any loan still outstanding nine months after the end of the accounting period. The current charge is 33.75%, matching the higher rate of tax on dividend income. This tax charge is only refunded to the company once the loan to the participator is [...]

HMRC has announced that the official rate of interest will remain at 2.25% for the 2024/25 tax year, despite the Bank of England Base Rate currently being 5.25%. This official rate is used to calculate the income tax charge on the benefit of employment-related loans and the taxable benefit of some employment-related living accommodations. In the past, these rates fluctuated with the base rate and changed several times a year, but HMRC has recently fixed the rate for the entire tax year, simplifying the calculation of the taxable benefit. Employers reporting beneficial loans on form P11d for the 2023/24 tax [...]

When a company car is provided for an employee or director, the employee incurs a taxable benefit based on the car's original list price multiplied by its CO2 emissions percentage. Additionally, if the employer pays for private fuel, this benefit must be reported on form P11d, unless the employer has arranged with HMRC to handle the tax on these benefits through monthly payroll. If the employee does not fully reimburse the employer for private mileage, the taxable benefit is based on a notional list price of £27,800 multiplied by the vehicle's CO2 emissions percentage, potentially up to 37%, resulting in [...]

The deadline for reporting shares, securities, and share options issued to employees for the 2023/24 tax year is 6 July 2024, aligning with the deadline for reporting expenses and benefits on form P11d. Employers must submit their employment-related securities annual returns online and include the appropriate spreadsheet template if applicable. HMRC provides downloadable templates on their website for data entry and upload. There are specific templates for each of the four tax-advantaged employee share schemes: Company Share Option Plan (CSOP), Enterprise Management Incentives (EMI), Save and You Earn (SAYE) share options, and Share Incentive Plans (SIP). Additionally, employers must report [...]

P11d forms for reporting expenses and benefits in kind provided to employees and directors for the 2023/24 tax year must be submitted online by 6 July 2024. Paper forms are no longer acceptable; submissions must be made using PAYE Online for employers or commercial software. Remember, reimbursed expenses that are incurred wholly, exclusively, and necessarily for the performance of the employee's duties no longer need to be reported. Dispensations from reporting are no longer required, although HMRC expects internal controls to ensure that these expenses qualify. Additionally, trivial benefits worth no more than £50 provided to employees do not need [...]

Updated guidance has been issued by the Equality and Human Rights Commission to help employers. The guidance provides advice on what employers can do to prevent pregnancy and maternity discrimination at work. The updates are due to the new flexible working laws that came into effect in April 2024, and they outline the changes that employers will have to make because of these laws. These changes include: Extending protection from redundancy. In a redundancy situation, offering suitable alternative employment. Dealing with the new right to request flexible working from the first day of employment. Increasing the flexibility in how paternity [...]

Are you wanting to start your journey into craft, or do you want to turn your hobby into a career? If so, you may be able to apply for a training bursary from Heritage Crafts. In total, 27 bursaries are available depending on individual need with some ringfenced for black and ethnically diverse trainees, veterans, trainees in Scotland and Wales, and those working in decorative, rural and endangered crafts. Craftspeople from Northern Ireland are also being encouraged to apply. The bursary of up to £4,000 can cover or contribute to the costs of: Training as an apprentice with a craftperson. [...]

Ten UK teams have been named finalists for the inaugural Manchester Prize, which was announced last week by the Prime Minister at the AI Seoul Summit. Each team will receive part of a £1 million fund to develop AI solutions over the next eight months, focusing on energy, environment, and infrastructure. Their projects include AI for solar energy integration, climate-resilient crop traits, waste flow analytics, and advanced battery manufacturing. Following the announcement, Chancellor Jeremy Hunt emphasized the AI sector's growth potential, with AI expected to significantly boost the UK economy. He called the prize “one of the best investments we [...]

Self-driving vehicles are set to be on British roads by 2026 following the enactment of the Automated Vehicles (AV) Act. Automated vehicles are expected to improve road safety by reducing human error, which is estimated to be responsible for 88% of road collisions. The AV Act, which was first announced in the King’s Speech of November 2023, attempts to position the UK as a leader in self-driving technology regulation, that according to government estimates, will potentially unlock a £42 billion industry and create over 38,000 skilled jobs by 2035. The legislation mandates that self-driving vehicles must meet high safety standards [...]

A new service has been launched to help employers and managers with employee health and disability. The guidance contained in the service will help in supporting employees and to understand any legal requirements. There are also links provided to government and other organisations that are able to help. The guidance contains information on: Managing absences and staying in touch with employees. In and out of work conversations with your employees. Helping you to decide on changes that may help employees stay or come back to work. How to protect your business and your employees with policies and procedures. How to [...]