P11D £8,500 earnings threshold to be removed
3 December 2014
Mark Groom, tax partner at Deloitte, comments on today’s confirmation from the government that the £8,500 P11D earnings threshold will be removed from 6 April 2015.
“Removing the threshold will simplify reporting as a single Form P11D can be used to report all taxable benefits. The new proposal will be fairer in many circumstances but will leave a small number of lower paid employees worse off, although the Government said that care workers and ministers of religion would be exempt from the impact of this proposal.
“Some lower paid workers will be worse off as they will now need to pay tax on certain benefits. For example, where their combined earnings for more than one job exceed the personal allowance and they receive benefits which will now be subject to tax. However, that is arguably a fair outcome, at least compared with someone with the same earnings with only one job who would be in the same position.”
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Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
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