Continuing this series of updates on National Insurance contributions David Heaton of Baker Tilly in Leeds looks at recent developments
The last NIC column described a redefinition in Schedule 4 to the Contributions Regulations introduced with the aim of harmonisation which instead takes deemed income from transactions in employment-related securities (ERS) out of the Class 1 reporting and collection rules. This column focuses on two unintended (one assumes) changes this time in the primary legislation on ERS.
The point arose in practice when considering how the legislation gives (or does not give) a deduction to an employee who bears the employer NIC cost on the exercise of an EMI option with an exercise price below market value at grant (referred to below as an 'undervalue EMI option').
...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Continuing this series of updates on National Insurance contributions David Heaton of Baker Tilly in Leeds looks at recent developments
The last NIC column described a redefinition in Schedule 4 to the Contributions Regulations introduced with the aim of harmonisation which instead takes deemed income from transactions in employment-related securities (ERS) out of the Class 1 reporting and collection rules. This column focuses on two unintended (one assumes) changes this time in the primary legislation on ERS.
The point arose in practice when considering how the legislation gives (or does not give) a deduction to an employee who bears the employer NIC cost on the exercise of an EMI option with an exercise price below market value at grant (referred to below as an 'undervalue EMI option').
...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
