The following Employment Tax guidance note Produced by Tolley in association with Sarah Bradford provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant tax changes associated with Brexit began to take effect. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit ― personal and employment tax implications guidance note.
Under the Immigration, Asylum and Nationality Act 2006 employers have a duty to prevent illegal working in the UK. As part of the process of taking on a new employee, an employer should check that the individual in question is legally entitled to work in the UK. Employers are obliged to check a document that is regarded as acceptable for showing permission to work in the UK. The initial checks should be carried out before employing a person. Follow-up checks should also be carried out where a person’s right to work in the UK is time-limited. While there is no penalty for simply failing to carry out such a check, if an employer is found to be employing someone who does not have a legal right to work in the UK, the employer can face a civil penalty of up to £20,000 in respect of each illegal worker. If the employer knows that an individual does not have the right to work in the UK but employs them anyway, that is a criminal offence for which the penalty is an unlimited fine and / or up to two years in jail. The employer should be aware that they are liable for the civil penalty, even if the check is performed by a member of staff. Further, the employer will not be able to establish a statutory excuse if the check is performed by a third party, such as a recruitment agency or a professional adviser. It is vital
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‘Hold-over’ relief allows for the deferral of a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset for the transferee for the purpose of a future disposal is reduced by an amount equal to the gain
Income and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax 2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting the foreign tax
Maintenance payments are payments made by a taxpayer to their former or separated spouse for the maintenance of that former spouse or their children. To obtain any tax relief for maintenance payments, one of the couple must have been born before 5 April 1935 and the payments must be made by virtue
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
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