In its latest Business Support Update, Streets Chartered Accountants highlights how changes to National Insurance contributions will affect you, the implications of hybrid or flexible working, the Foreign Account Tax Compliance Act, amongst other topics.
In this session, Streets Tax Partner Jennie Brown looks at the tax implications of hybrid or flexible working, with a particular focus on the potential tax changes relating to treatment of expenses and employee benefits, overseas remote working and thoughts on future trends for employee benefits.
The government has announced tax changes to fund £12 billion a year to be spent on the NHS and social care across the UK. National Insurance contributions (NICs) will increase by 1.25% for one year only for employees, employers and the self-employed from April 2022. This will cover both Class 1 (employee and employer), Class 1A and 1B and Class 4 (self-employed) NICs. Those above State Pension Age are not impacted by the April 2022 changes.
In 2012 the UK and the US signed a treaty to implement FATCA in the UK. Although FATCA has been around for a number of years, you may never have heard of it or if you have you may think it is not relevant to you, but you could be wrong. The aim of FATCA is to reduce tax evasion by US citizens by imposing obligations on Financial Institutions to report payments made to US citizens to the Internal Revenue Services (IRS). In the UK this is done via HM Revenue & Customs under the Model 1 Inter-Governmental Agreement (IGA).
Hybrid working is essentially flexible working, and something that in recent years many employers have had to consider in order to provide competitive remuneration packages to potential employees. Quite literally overnight, the pandemic saw this previously perceived perk as a necessity for those businesses who could continue to operate in this way. Now, many businesses are considering adopting formal hybrid working arrangements as they seek to allow their employees to attend the workplace for part of their working time, and continue to work at home or elsewhere remotely, for the remainder of their working time.
Organisations often run hard to stand still. It’s a new world and it seems employers will need to run even harder. How to cope with stress? How to be a good corporate citizen and our company do its bit? How to embrace diversity in all its forms? How to get ahead in a recruitment market with shortages in skilled workers and the needs of younger generations to consider? How to make hybrid working a success? This edition starts to answer these questions.
SmartMoney is the bi-monthly magazine from Streets Financial Consulting plc, Streets’ independent financial planning arm, full of news and helpful information on personal financial planning.