Employers should be aware that a number of changes took effect from 6 April 2011:
- 2010/11 P35 and P14s have to be filed electronically by 19 May 2011. There is no 7 day period of grace and those who file late will be subject to penalties;
- P45 & P46 forms should be filed online;
- The default code BR to be replaced by code OT in certain situations including where payments are made following termination of employment;
- Salary sacrifice arrangements can no longer be used in conjunction with a works canteen benefit. For those joining new childcare voucher schemes relief is restricted for higher rate employees;
- For those with company cars, the 15% list price benefit charge now applies to cars with 125g/km with reductions for cars with less than 120g/km. The price cap of £80,000 is removed. Consideration could be given to moving to an energy efficient car and the use of salary sacrifice can also produce further savings;
- For those employees using their own cars, the tax free allowance is increased from 40p per mile to 45p per mile for the first 10,000 miles;
- Relief for pension contributions is restricted to £50,000 per employee. There is provision to carry forward unused amounts for three years.
The changes detailed above create a number of opportunities for accountants to offer support and value to their employer clients and we can assist with seeking and identifying the best solutions.
Please call Martin Mann on 020 7182 4745 or your normal Gabelle contact for further details.