Other news in brief

A round up of other news this week.

A round up of other news this week.

From 6 April 2022, no employer’s NIC will be due on earnings of up to £25,000 per annum paid in relation to newly created jobs in Freeport Tax Sites. Certain conditions must be met for this relief to be due. One requirement is that the relevant employee spends at least 60 percent of their working time located in a Freeport. HMRC are now consulting on draft regulations that will treat this condition as met by employees whose working patterns are adjusted by their employer to accommodate disability, pregnancy and maternity. These regulations apply to Freeports in Great Britain and are intended to come into effect on 6 April 2022. The consultation closes on 17 February.

Towards the end of 2020, in HMRC v Development Securities PLC and Others, the Court of Appeal restored the decision of the First-tier Tribunal that certain Jersey-incorporated subsidiaries of a UK group were centrally managed and controlled (and therefore tax resident) in the UK at the material times. The case concerned arrangements that relied for their tax effectiveness upon the Jersey-incorporated companies being resident in Jersey when they acquired certain assets. For further details, please see an earlier article on the case. The Supreme Court has now refused to grant the taxpayer permission to appeal on the basis that the taxpayer’s application did not raise an arguable point of law and the case turned on its particular facts. This leaves unanswered the central question raised by the case, which is around the extent to which the judgment in Wood and another v Holden (Inspector of Taxes) [2006] EWCA Civ 26, [2006] 1 W.L.R. 1393 can be relied on today. In that case, the Court of Appeal held that the board of directors was exercising central management and control of a Dutch special purpose vehicle (incorporated into a structure to save tax) even though the directors had been guided in their actions by the parent company and its advisers (that finding being made on the basis that the function of the company’s own constitutional organs were not usurped by management and control being exercised independently of or without regard to those organs).

With the Coronavirus Job Retention Scheme (CJRS) now closed and the economy reopening, it is tempting to put the furlough scheme behind us.  However, at a total cost of £70 billion to the public purse, HMRC are understandably focussed on furlough fraud and errors. Given the seriousness of misusing taxpayer money, even unintentional over/under claims risk being perceived as reckless or even fraudulent by those outside of your organisation. A recent blog post explains that it is important to take control of this risk and manage it appropriately for your business.

From ESG reporting demands to crypto-payments and some major tech moves, there will be no shortage of things keeping HR leaders on their toes in the year ahead. KPMG in the UK’s Tim Payne, Partner, FS People Consulting, and Eloise Knapton, Partner, Employer Reward Services, make some predictions about what is to come – which they will return to and see what they get right as the year unfolds.  Readers may also be interested in listening to the on-demand recording of our recent digital event discussing the future of HR.