We use cookies to customise content for your subscription and for analytics. If you continue to browse Lexology, we will assume that you are happy to receive all our cookies. For further information please read our Cookie Policy.
In this update we report on changes to the operation of PAYE from 6 April 2011, which will impact in particular upon compensation payments made to former employees and the taxation of share option gains arising after the employee has left employment, and a recent Court of Appeal decision confirming that employers are not required to apportion settlement payments to show the taxable and non-taxable elements
In its judgment in the case of Astra Zeneca UK Limited v HRMC, the European Court of Justice has followed the Advocate General's opinion that part payment of salary to employees in the form of vouchers is a taxable supply for VAT purposes
Providing a company car to an employee is treated as a taxable benefit but there is an exemption to the general rule where the car provided by the employer is used as a "pool car"
