As we await for the Government to consider how best to provide fairness and equity for all through the tax system as it relates to Pensions tax relief, the results are in from a CIPP quick poll about the how important tax relief was to employers when it came to choosing their pension scheme.
The quick poll ran from 1 to the 12 October 2018 and asked ‘Did the availability of tax relief for your low paid workers factor into your/your company’s pension scheme choice?’
Responses included
Yes – it was a critical factor (18) - 14% Yes – it was a factor but not critical (23) - 18% No – it wasn’t important (46) - 35% We recognise now that it should have been (5) - 4% N/A (38) - 29%
CIPP comment The CIPP along with several key stakeholders in the pensions industry were signatories to the original letter. We welcome the positive action that government is considering to address the anomaly and hope that genuine progress towards this aim is achieved shortly.
We look forward to the Budget on Monday 29 October which would provide an ideal platform for the Chancellor to make a positive announcement for reform to support those on low pay who are affected by this situation.
As this is just a quick poll it doesn’t allow for additional responses. We would welcome any additional comments you may have on this subject so please do email your thoughts to us at policy. Thank you.
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The influence payroll can have on company costs 16 November 2018
Just over a fifth of poll respondents’ factor in the tax and National Insurance contribution (NIC) costs of their Seasonal Reward Scheme.
In the first of our series of festive quick polls we asked the payroll community if the tax and NIC costs are considered when deciding what is included in their Christmas reward schemes.
Of the 148 responses received, over half do not provide any kind of seasonal reward scheme (58%) but of the remaining 42% over half (22%) said that yes, the tax and NIC costs were a consideration. 15% said that the costs were not a consideration in decision making at all, and the minority of 5% recognised that the costs should have been factored in to decisions, but they actually had not. Payroll Professionals are in a unique position to really help their business. With payroll being one of the biggest parts of any business, it has a major influence over company costs. The knowledge held by payroll professionals is key to efficiency savings within an organisation, the tax and NIC costs of reward packages being a prime example. As the CIPP’s reiterated in its Future of Payroll report, the information that payroll must have to adhere to regulations is essential to strategic business making. It can provide business intelligence and analytics regarding an organisations’ most valuable asset - its employees, and one of its highest costs - their pay. The Future of Payroll (2017-18) report is the first research paper in a series - to be produced annually - which goes some way to predict the future of payroll; this first report anticipating developments based on the responses provided by payroll professionals, representing 2.3 million employees in the UK.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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