The 2014 Finance Bill - Employee issues

Employee ownership
  • Tax-advantaged share schemes: self-certification and various technical changes.
  • Increases in maximum annual awards under share incentive plans.
  • Online filing for all employee share scheme returns and information, including Enterprise Management Incentives and non-tax-advantaged arrangements.
  • Various simplifications of the rules for employee shares and options, as recommended by the Office of Tax Simplification, including provision  for internationally mobile employees and correction of an anomaly as regards the treatment of such benefits for the purposes of overseas pension schemes.
  • Capital gains relief on disposals of shares to employee-ownership trusts.
  • Income tax exemption for bonus payments up to £3,600 from a qualifying company owned by an employee-ownership trust.
  • Income tax exemption for bonus payments up to £3,600 from a qualifying company owned by an employee-ownership trust.

Benefits in kind
  • Income tax exemption (up to £500) where employer meets the cost of recommended medical treatment to enable an employee to return to work.
  • Employment-related loans: threshold for tax exemption increased from £5,000 to £10,000.
  • Company car tax rates: changes from 2016/17.
  • Company cars and vans: technical change to ensure that the full ‘cash equivalent’ under the benefit rules is taxed even if the provision of the vehicle would fall to be treated as earnings under any other provision giving rise to a smaller liability.
  • The reduction in the taxable benefit for a company car or van in respect of an individual’s payments for private use to apply only where the payment is actually made in the tax year concerned.

Other
  • Treatment of UK workers engaged via offshore employment intermediaries, with special provisions for oil and gas workers on the UK continental shelf.
  • Treatment of workers engaged via onshore employment intermediaries.
  • Changes to prevent artificial use of dual contract arrangements by non-UK domiciled individuals, to gain the benefit of the remittance basis.