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    Trivial benefits

    There is no requirement for an employer to report a benefit which meets the following criteria:

    • It cost £50 or less to provide
    • It isn’t cash or a cash voucher
    • It isn’t a reward for the employee’s work or performance
    • It isn’t in the employee’s terms of their contract

    If the provision or availability of the benefit is contractual, for example included within the employee’s contract or featured in the staff handbook, then the exemption would not apply and it would be a reportable benefit.

    Restitution interest

    Where tax has been overpaid by a company (not an individual) as a result of a mistake in law or following unlawful collection of tax by HMRC a restitution award may be made. Where the award is made, as a result of a judgment or an agreement between the parties which became final on or after 21 October 2015, the interest element of the award (i.e. the element which represents compensation for the time value of money), whether arising before, on or after 21 October 2015, is chargeable to corporation tax at a special rate of 45% instead of the main rate of 20%.

    HMRC published changes to Part 8C of the Corporation Tax Act 2010 on 22 March 2017.

    The measure will remove charitable companies and the income of policyholders of with-profits funds from the scope of the 45% rules, but will bring in corporate beneficiaries who have made a claim or who have received restitution interest from HMRC.

    Automatic exchange of information

    The deadline for submitting Automatic Exchange of Information (AEOI) returns for the year ended 31 December 2016 is 31 May 2017.

    Returns should include reportable accounts for the Financial Accounts Tax Compliance Act (FATCA), Crown Dependencies and Overseas Territories (CDOT) and the first year for the Common Reporting Standard (CRS).

    Late returns, or the filing of an incorrect return, may result in penalties being charged.

    Any queries can be directed to enquiries.aeoi@hmrc.gsi.gov.uk