2011 has been a turbulent year for many UK businesses. The continuance of the harsh economic environment meant the Coalition government was forced to act and therefore implement various tax initiatives to aid UK recovery. The main changes to employment taxes made in 2011 included the increase in NICs, restrictions on pension relief and the introduction of disguised remuneration rules. There has also been significant progress in bringing in ‘real time’ information of the PAYE system and tougher compliance regulations.