particular that government should consider whether online platforms could operate a system equivalent to Pay As You Earn, deducting tax from earnings and thereby taking responsibility for fulfilling the tax obligations of their workers.
This does not change the employment status of the platform worker. The idea of ‘PAYE for platforms’, which so far as we know has not been suggested before, would be optional. However, for those who chose it, it would remove the administrative burden from these individuals, who can be some of the most vulnerable in the labour market and mean that they should not get an unexpected tax demand at the end of the year. It would also make tax collection more efficient.”
The publication of ‘Platforms, the Platform economy and Tax Simplification’ follows the OTS’s focus paper on the Gig economy published on 2 December 2016, and an update to that paper published on 22 June 2017.
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LGA consults on increase to income tax and NICs to pay for adult social care 1 August 2018
The Local Government Association (LGA) has launched a nationwide consultation to kick-start a “desperately-needed” debate on how to pay for adult social care and rescue the services caring for older and disabled people from collapse.
The LGA eight-week consultation therefore sets out options for how the system could be improved and the radical measures that need to be considered given the scale of this funding crisis. Possible solutions to paying for adult social care in the long-term outlined in the consultation include: • Increasing income tax for taxpayers of all ages – a 1p rise on the basic rate could raise £4.4 billion in 2024/25 • Increasing national insurance – a 1p rise could raise £10.4 billion in 2024/25 • A Social Care Premium - charging the over-40s and working pensioners an earmarked contribution (such as an addition to National Insurance or another mechanism). If it was assumed everyone over 40 was able to pay the same amount (not the case under National Insurance), raising £1 billion would mean a cost of £33.40 for each person aged 40+ in 2024/25. • Means testing universal benefits, such as winter fuel allowance and free TV licences, could raise £1.9 billion in 2024/25 • Allowing councils to increase council tax – a 1 per cent rise would generate £285 million in 2024/25 The consultation - the biggest launched by the LGA – is seeking the views of people and organisations from across society on how best to pay for care and support for adults of all ages and their unpaid carers, and aims to make the public a central part of the debate. The consultation will run for eight weeks from 31 July. The LGA will respond to the findings in a further publication in the autumn, which will be used to influence the Government’s own expected green paper, forthcoming Autumn Budget for 2019/20 and Spending Review.
Recent surveys by the LGA show that 96 per cent of councils and lead members believe there is a major funding problem with adult social care; 89 per cent said taxation must be part of the long-term solution to funding it, and that 87 per cent of the public support more funding to plug the significant funding gap in the sector.
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OTS review the Business Life Cycle 3 August 2018
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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