Matthew Taylor made several recommendations in this review which would have an impact on payroll practices and processes. The CIPP will be submitting a response to the discussion paper when it is published.
Training In line with the underlying theme of improving productivity though training, the government will consult on whether to extend the scope of tax relief that is currently available for work-related training costs for the employed and self- employed. Income Tax: mileage rates for unincorporated property businesses The measure allows landlords the choice to use fixed rates per business mile to calculate their allowable deductions for motoring expenses, instead of deducting actual running costs and claiming capital allowances. It will not be available to landlords who are companies or in mixed partnerships (a partnership with both individual and non- individual members). This makes the tax computations of these businesses more consistent with trading businesses who already have this choice, and the mileage rates will be the same as for trading businesses and employees using the same vehicles. Investing in HMRC The government is investing a further £155 million in additional resources and new technology for HMRC. This investment is forecast to help bring in £2.3 billion of additional tax revenues by allowing HMRC to: • transform their approach to tackling the hidden economy through new technology • further tackle those who are engaging in marketed tax avoidance schemes • enhance efforts to tackle the enablers of tax fraud and hold intermediaries accountable for the services they provide using the Corporate Criminal Offence • increase their ability to tackle non-compliance among mid-size businesses and wealthy individuals • recover greater amounts of tax debt including through a new taskforce to specifically tackle tax debts more than 9 months old Save As You Earn scheme Employees on maternity and parental leave will be able to take up to a 12 month pause from saving into their Save As You Earn employee share scheme, increased from 6 months currently. The change will take effect from 6 April 2018. VAT registration threshold Although very high in comparison with other countries, the Vat Registration Threshold will remain at the current level of £85,000 for two years from April 2018, thereby helping small businesses. In response to the report by the Office of Tax Simplification, the government intends consulting on the design of the threshold.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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