PAYE is an acronym for pay as you earn. Despite this label, the employee (‘you’ in the title) has little involvement in the PAYE process, other than suffering the income tax and NIC deduction from their wages or salary. In the majority of cases, it is the employer who administers PAYE on their employees’ earnings and is responsible for paying over the tax and NIC (plus any student loan repayments) deducted to HMRC. However, there are some circumstances where this is not the case and tax and / or NIC has to be accounted for by a third party.
Where employees receive incentive ‘awards’ from a third party, tax and NIC may be due on the value of the award. If the employer is not directly involved in the provision of the award by the third party, then the third party may opt to enter into a TAS. The agreement is between the third party and HMRC. Where a TAS has been entered into, the third party can choose to account
Substantial shareholding exemption ― overviewThe substantial shareholdings exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. No claim is required. Provided
Foreign exchange issuesOverview of foreign exchange provisionsForeign exchange (FX) movements are generally taxed following the rules applicable to the underlying income, expenditure, asset or liability on which they arise, broadly as follows:Capital assetsOn a realisation basis (ie on disposal)
Self assessment ― amendments and correctionsOnce a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the