Finance Bill Amendments: Employment Tax | KPMG | UK
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Finance Bill Amendments: Employment Tax

Finance Bill Amendments: Employment Tax

The majority of measures in the Finance Bill 2017 have been removed but several employment tax changes remain.


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As mentioned in our other article this week, a number of measures have been removed from Finance Bill 2017 due to the shortened Parliamentary timetable. The Chartered Institute of Taxation, amongst others, had urged the Chancellor to avoid rushing through a large number of tax changes with limited Parliamentary scrutiny and it appears that this advice has been heeded. Approximately 70 percent of the clauses have been dropped and only 25 of the 84 clauses remain, many of which relate to employment tax.

From an employment tax perspective the main points are as follows:

  • The proposed changes to the Disguised Remuneration legislation included the introduction of a new 2019 loan charge. This aspect of the changes has now been removed;
  • The proposed changes to Termination Payments and PAYE Settlement Agreements have been removed in full. Both were due to come into effect from 6 April 2018;
  • The proposed changes to the time limits for making good on benefits have also been removed. These were due to take effect from 6 April 2017;
  • For off-payroll working in the public sector, an amendment has been made refining the definition of public authority. This is to correct an oversight in the original definition of ‘public authority’ which unintentionally brought some private sector businesses within scope due to their providing services on behalf of the NHS; and
  • An amendment has been made in relation to the proposed Optional Remuneration Arrangements (OpRA) rules to ensure that the provision for retirement benefits remains unaffected by the new OpRA rules.

For further information please contact:

Patrick Martin

Seamus Murphy 

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