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GOVERNMENT UPDATEBack

RMIReport1The Government has issued consultations on three key areas of tax policy: company car tax for ultra-low emission vehicles (ULEVs), tax and National Insurance treatment of termination payments and salary sacrifice for the provision of benefits-in-kind.

Company car tax for ultra-low emission cars

Summary: The government is consulting in order to seek views on the design of new ultra-low emission vehicle bands in the company car tax system. The consultation seeks to explore how best to incentivise the cleanest cars into the next decade, a period during which rapid innovation will deliver significant changes in the way motor vehicles are powered.

Department:            HM Treasury

Deadline:                 19 October 2016

Please click here to see the full consultation


Simplification of the tax and National Insurance treatment of termination payments – consultation on draft legislation

Summary: The government has analysed the responses to its consultation on termination payments held in summer 2015 and has set out its response. At Budget 2016, the government announced that it would make changes to the taxation of termination payments.

Department:            HMRC

Deadline:                 5 October 2016

Please click here to see the full consultation

Salary sacrifice for the provision of benefits-in-kind

Summary: At Budget 2016 the government announced it will consider limiting the range of benefits-in-kind that attract Income Tax and National Insurance Contributions advantages when provided as part of salary sacrifice arrangements.

The purpose of the consultation is to explore potential impacts on employers and employees should the government decide to change the way the benefits code applies when a benefit-in-kind is provided in conjunction with a salary sacrifice or flexible benefit scheme.

Department:            HMRC

Deadline:                 19 October 2016

Please click here to see the full consultation

We will be monitoring the progress of the consultation and keep you up to date. Please do contact us on the NFDA helpline 01788 538303 if you need any clarifications.

Posted by Sue Robinson on 12/08/2016