eNEWS - March 2014

Shared Parental Leave and Pay

The Government has issued the draft regulations for Shared Parental Leave and Pay which are expected to become law from 1 October 2014 and will apply to babies due from April 2015.

The draft regulations set out the new statutory shared parental pay entitlements for parents. The press release states that:

'The Act will also help people to better balance their work and home life with the following measures:

• From April 2015, mothers, fathers and adopters can opt to share parental leave around their child's birth or placement. This gives families more choice over taking leave in the first year - dads and mothers' partners can take up to a year, or parents can take several months at the same time;
• From 1 October 2014, prospective fathers or a mother's partner can take time off to attend up to two antenatal appointments;
• Adoption leave and pay will reflect entitlements available to birth parents from April 2015 - no qualifying period for leave; enhanced pay to 90% of salary for the first 6 weeks; and time off to attend introductory appointments. Intended parents in surrogacy and "foster to adopt" arrangements will also qualify for adoption leave and pay;
• Extending the right to request flexible working to all employees from 30 June 2014;
• Replacing the current statutory procedure, through which employers consider flexible working requests, with a duty on employers to consider requests in a 'reasonable' manner.'

Employment Relations Minister Jenny Willott said:

'Current workplace arrangements have not kept up with the times. The Children and Families Act will bring the way new parents balance their working and home lives into the 21st century.'

Internet link: BIS press release

HMRC issue guidance on Bitcoin

HMRC have issued guidance on the tax treatment of income received from, and charges made in connection with, activities involving Bitcoin and other similar cryptocurrencies.

Internet link: VAT brief

Advisory fuel rates for company cars

New company car advisory fuel rates have been published to take effect from 1 March 2014. HMRC's website states:

'These rates apply to all journeys on or after 1 March 2014 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.'

The advisory fuel rates for journeys undertaken on or after 1 March 2014 are:

Engine size	Petrol	Diesel
1400cc or less	14p	12p
1401cc - 2000cc	16p	14p
Over 2000cc	24p	17p

 

Engine size	LPG
1600cc or less	9p
1601cc - 2000cc	11p
Over 2000cc	17p

Please note that not all of the rates have been amended, so care must be taken to apply the correct rate.

Other points to be aware of about the advisory fuel rates:

• Employers do not need a dispensation to use these rates.
• Employees driving employer provided cars are not entitled to use these rates to claim tax relief if employers reimburse them at lower rates. Such claims should be based on the actual costs incurred.
• The advisory rates are not binding where an employer can demonstrate that the cost of business travel in employer provided cars is higher than the guideline mileage rates. The higher cost would need to be agreed with HMRC under a dispensation.

If you would like to discuss your car policy, please contact us.

Internet link: HMRC advisory fuel rates