HOT TOPIC
It’s times like these when it
of course, provide information in News Online , via our social media platforms and the wide range of other communications available to members and the wider payroll community. The chancellor is responsible for raising revenue through taxation or borrowing, and for controlling public spending What else is on the horizon? The key pledge we’ve been keeping an eye on is, of course, the potential change to NI and abolition of the health and social care levy. However, that wasn’t the only thing discussed in Truss’ campaign bid. Some of the other interesting commitments that have been made are as follows: l a review of IR35 rules l a reassessment of the the tax system to make it easier for parents and carers to be at home with loved ones l introducing ‘full-fat’ freeports, expanding their scope to give greater tax breaks and lower tariffs for eligible businesses l a review of inheritance tax l tightening ‘up incentives in the welfare system to encourage more people to go into work’ l ruling out a second Scottish independence referendum l scrapping all European Union legislation by the end of the year, except those that have been specifically approved by government ministers. The key pledge we’ve been keeping an eye on is, of course, the potential change to National Insurance and abolition of the health and social care levy
not one, not two, but three changes to NI in the space of one tax year if the NI rates are reduced in 2022/23. They’ve already seen the increase to rates from 6 April 2022, and then a mid-year change to the primary threshold (PT) from 6 July 2022. The change to the PT was announced in March 2022, to allow software developers and employers more than three months to prepare for it. However, this did prompt criticism from some developers who believed it could be implemented more quickly. Will this impact how quickly any future changes will be pushed through? It will also understandably have impacts for software developers and for payroll teams who will need to prepare for the changes, test them thoroughly and prepare for any anomalies that may arise. In payroll, you can never fully prepare for every single scenario that will take place. It will also understandably have impacts for software developers and for payroll teams who will need to prepare for the changes, test them thoroughly and prepare for any anomalies that may arise Appointment of a new chancellor In July 2022, Rishi Sunak resigned as chancellor of the Exchequer. Nadim Zawahi stepped into this role for a brief period but has since been replaced by Kwasi Kwarteng. As we know, the chancellor is responsible for raising revenue through taxation or borrowing, and for controlling public spending. You can quickly see why the decisions made by the chancellor could impact the work of payroll professionals. At the time of writing (there it is again), we had received the date a ‘mini-budget’ would be delivered, sending the rumour mill into overdrive. This means Kwarteng will have provided details of his plans for tax cuts, and how to tackle the current energy crisis. As soon as any updates are provided, the policy team will,
Keep up to date The last few years have been strange, to say the least, for the payroll profession. That said, you’ve all handled the flurry of changes and additional work and pressure admirably, continuing to keep the UK workforce paid accurately and on time, through periods of rapid change and uncertainty. There’s even more change yet to come, as it was announced that a ‘mini- budget’ was due to be delivered by Kwasi Kwarteng on 23 September 2022. It’s times like these when it would be great if we had a crystal ball, which could allow us a glimpse into the future, so we could start to prepare accordingly. Continue to make the most of your membership with the CIPP – the policy team is here to keep you abreast of all the changes and to discuss what implications they may have for the payroll profession. Keep your eyes peeled, and please, as ever, feel free to get in touch with us any time, at policy@cipp.org.uk. n would be great if we had a crystal ball, which could allow us a glimpse into the future, so we could start to prepare accordingly
Although we can anticipate what some of the immediate changes will be, we cannot know for sure what other changes are yet to come.
51
| Professional in Payroll, Pensions and Reward |
Issue 84 | October 2022
Made with FlippingBook - Online magazine maker