The following Employment Tax guidance note Produced by Tolley in association with Robert Woodward provides comprehensive and up to date tax information covering:
The Maternity and Parental Leave Regulations are designed to ensure that a woman on additional maternity leave is entitled to the same level of benefits she would have received whilst on ordinary maternity leave.
The main impact of the regulations is that when an employee who has been provided with non-cash benefits, such as a company car, goes on maternity leave, her employer could be considered to be sexually discriminating against that employee if those benefits are withdrawn or postponed.
Following the Employment Appeal Tribunal ruling in the Peninsula Business Services Ltd case, the position for childcare vouchers (CCV) offered under salary sacrifice differs from that relating to other non-cash benefits to the extent that the vouchers are to be considered as cash benefits rather than benefits in kind. This brings CCV in line with pension contributions.
This distinction is important because the requirement to provide pension contributions during maternity leave is restricted to periods of paid maternity leave, ie when the employee is in receipt of maternity pay. Where the employee receives Statutory Maternity Pay (SMP) only, pension contributions will only be payable for the first 39 weeks of maternity leave even if the employee takes the full 52 weeks leave available.
This guidance note concentrates on cycle to work (CTW) arrangements as it is this type of arrangement that is likely to be impacted the most (being the most common salary sacrifice arrangement after pensions and CCVs), but the regulations also apply to any non-cash benefit provided by salary sacrifice.
The regulations apply no matter how those benefits are provided, ie whether as a contractual term or via a salary sacrifice agreement. As such, employ
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
‘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
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
This guidance note explains how to calculate the amount of tax that arises under the lifetime charge. In general terms the lifetime charge will apply to individuals who transfer property into a trust that is subject to the relevant property regime. See the Chargeable transfers and Occasions of
This guidance note provides details of quarterly instalment payments (QIPs) for corporation tax purposes and which companies need to pay their tax liabilities in this manner.Generally, corporation tax is payable nine months and one day after the end of the relevant accounting period. However, large
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.