(i) a single aggregate figure, or (ii) separate figures for different types of work or different rates of pay.”
The amendments made by this Order do not apply in relation to wages or salary paid in respect of a period of work which commences before this Order comes into force.
CIPP comment The CIPP policy and research team, together with members that span all specialisms within payroll, have been working with BEIS on this proposal throughout 2017. As part of that work and on behalf of BEIS we have published two surveys to members and the wider payroll profession, as we believed that it was vital that BEIS were in full possession of all the facts, views and experiences when discussing the issue with members and in advance of producing legislative change.
The results showed that a slight majority of respondents already provided this information on their payslips, however a significant number did not, nor were they sure whether their software would enable them to do this.
The somewhat minimalistic wording in the order will need to be bolstered by good, clear, unambiguous guidance and we remain committed to working with BEIS to ensure its timely and accurate production ahead of April 2019, to enable software developers and employers, through their payroll professionals, to be ready to comply with this tight timescale.
The CIPP continue to support employers as they seek to comply with an obligation which will bring undoubted additional burdens for many in the payroll profession.
A roundtable will be held shortly with BEIS and if you would like to express an interest in being involved please contact us at policy with the identifier ‘Payslip data’ in the subject line.
2018 promises to be an extremely busy year in many areas of pay and reward and we thank members in advance for their constructive commitment to dealing with this change.
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Draft legislation: Simplification of PAYE Settlement Agreements 13 February 2018
A technical consultation has been published on secondary legislation to reduce administrative burdens by simplifying the PAYE Settlement Agreement process from April 2018.
From 6 April 2018, the PAYE (Pay As You Earn) Settlement Agreement (PSA) process will be simplified through removing the current requirement on employers to renew their PSA annually, and providing for an ‘enduring agreement’.
Changes to the Income Tax (PAYE) Regulations 2003 are required to enable this and draft legislation has been published for a short period of technical consultation (closes at 11:45pm on 21 February 2018).
The draft legislation introduces the concept of a PSA being an ‘enduring’ agreement. This agreement will continue to remain in place for each subsequent tax year until varied or cancelled, either by the employer, or HMRC. This simplification removes the need for an upfront annual agreement for employers who wish to use this option.
Further changes will allow PSA applications to be processed electronically without the need for agreement with an officer of HMRC, if and when digital processes are introduced.
Geographical extent - United Kingdom
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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