Employee tax

  • Trivial employee benefits: exempt if costing less than £50, from 6 April 2016.
  • Voluntary payrolling extended to non-cash vouchers and credit tokens: enabling legislation for regulations to have effect from 6 April 2017
  • Tax relief for travel and subsistence: restricted where employee engaged through employment intermediary, from 6 April 2016.
  • Benefits in kind: if there is a specific statutory provision for calculating a benefit it must be used, even if the employee enjoys the benefit on the same terms as members of the public, from 6 April 2016.
  • Company cars: increases in ‘appropriate percentage’ for calculating taxable benefit, from 6 April 2019; percentage for cars with no CO2 emissions figure increased from 6 April 2017.
  • Company car diesel supplement: three percentage point differential from petrol cars maintained until April 2021.
  • Van benefit charge: the charge for zero-emission vans to be 20% of the main rate for 2016/17 and 2017/18, increasing on a tapered basis to become 100% of the main rate from 6 April 2022.
  • Employee shareholder status: lifetime limit of £100,000 on the gains that a person with this status can make on the disposal of employee shares exempt from CGT, where relevant shareholder agreement entered into from 17 March 2016 onwards.
  • Employee shareholders providing investment management services: shares not exempt from CGT where proceeds constitute disguised investment management fee or carried interest, from 6 April 2016.
  • Tax-advantaged employee share schemes: technical changes, including clarification for internationally mobile employees, mainly from 6 April 2016.
  • Restricted stock units: clarification that the tax charge is under the legislation relating to securities options rather than general earnings, from 6 April 2016.
  • Sporting testimonials of employed sportsmen: liable to income tax, subject to £100,000 exemption where not contractual or customary, broadly from 6 April 2017.
  • Disguised remuneration: anti-avoidance measures with effect from 16 March 2016 and 1 December 2016, with further provisions to follow in the 2017 Finance Bill.