The changing patterns in employment tax
Richard Britten, Tax Director at Johnston Carmichael LLP, discusses changing patterns in employment tax ahead of the ICAS Tax Conference.
The employment tax regime has seen significant changes over the past year, particularly for companies with internationally mobile employees.
At the ICAS Tax Conference on 21 May, I'll be reflecting on some of the more important changes suggested by the Office of Tax Simplification, tracking them through to the actual measures that have been affecting employers and employees over the past 12 months.
These range from suggestions to simplify expense and benefit reporting, to the introduction of the detailed rules, which affect organisations that use external agencies and intermediaries for staff requirements.
A number of the recent changes will impact domestic and internationally mobile employees.
While the new rules are generally helpful in the long term, the implication is that tax liabilities may also increase. This will create a more complex tax and remuneration regime for companies with employees mobilised around the globe.
For example, the introduction of these changes, in respect of the taxation of employers' share scheme arrangements for internationally mobile workers, means that employers will need to modify their calculations of PAYE and reporting events to the tax man.
This has historically been a complex area, but significant changes to simplify legislation have been rolled out – but does it go far enough?
I'll be assessing these changes and giving a round-up of other practical examples at the ICAS Tax Conference.