Payroll insight
● agents cannot register on behalf of clients – 17% ● registration needs to be more flexible, not just once a year – 33% ● additional reasons – 31%, comprising: ❍ the risk of double taxation ❍ little or no buy-in from the business (it is not compulsory) ❍ P11D returns are still required for some other benefits such as beneficial loans and living accommodation ❍ payrolling benefits would greatly increase end of year admin ❍ unsure of software capability. It is clear that with 63% of respondents asking for easier processes, something isn’t quite hitting the mark but whether that is the reality or simply a perception has yet to be established. with agent registration being seen to be important with 24% share of the vote. Additional requests indicate that being able to start payrolling at any point in the year – and not just for new employers or In the survey, ability to payroll all benefits received 35% of the votes What would encourage payrolling?
those that had not previously provided a benefit in kind – was important. Further, the P11D(b) return as an ongoing mechanism for reconciling class 1A NICs was seen to be discouraging. ...easy to see why many would choose not to take on additional burdens that they don’t have to The recently mandated requirement to include car benefit data in the full payment submission (FPS) also received some criticism with respondents asking that this requirement be simplified. The comments received mirror the anecdotal comments that were made during the 2018 national forum meetings. Is payrolling the future? The taxation of expenses and benefits in kind remains a complex and complicated area, quite often requiring specialist
support from tax professionals. Even allowing for the improvements that have come about as a result of the work of the OTS, we still don’t see a future where payrolling is a standard option – at least not without a significant restructure of the tax system and the arrangements that enable that system to work. For payroll professionals who are constantly challenged with complying with a wide range of mandatory requirements, it is easy to see why many would choose not to take on additional burdens that they don’t have to. So, it would appear that HMRC and HM Treasury still have some way to go to persuade and enable employers and their agents to deliver a significant reduction in the number of P11D returns that continue to be submitted each year. n Thank you to everyone who responded to our payrolling survey during February and March. As always, please do not hesitate to contact the policy and research team via email at policy@ cipp.org.uk to share your experiences on this, and any other area of payroll operation.
Join us at the next CIPP public sector Special Interest Group (SIG) meeting and hear directly from the experts: Interested in public sector payroll and pensions?
● CIPP, policy team ● Eversheds ● The Pensions Regulator (TPR)
● RSM ● The Payroll Site ● HMRC
Tuesday 4 June RSM Farringdon London
10:00am - 1:30pm Refreshments from 9.30
For more details or to book your place, please email the SIG chair, shaun.tetley@portsmouthcc.gov.uk .
cipp.org.uk CIPP_UK cip .org.uk @CI P_UK
Public Sector Special Interest Group
29
| Professional in Payroll, Pensions and Reward |
Issue 50 | May 2019
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