The CIPP recognise that in an increasingly digital world, widespread hunger for detail is no longer evident for the majority of the working population. However, to ensure clear and accurate interpretation and subsequent compliance for the new framework and principles, clear and detailed guidance needs to be produced at a much earlier stage than is currently being delivered with new or adapted tax policies that are being delivered to achieve simplifications. Certain industries/sectors will need greater protection as a result of the proposed changes, the public sector, particularly emergency services, have developed processes and practices aimed at delivering cost savings and so ‘… any new set of rules that simplify the tax treatment of T&S expenses must not overall come at a cost to the exchequer…’ consideration needs to be given to the impact on the cost of delivering essential public services.
The ‘cost of working’ should not increase for the employee, as a result of change for simplification, particularly if the changes are not initially perceived as achieving this outcome.
The CIPP look forward to being further involved with discussion and debate. And to this end watch out for news of upcoming Think Tank roundtable forums in January 2016.
Thank you to those of you who could give the time to feed in to this survey – following a busy year for consultations and surveys the policy team appreciated this enormously.
The full response is available to view through the link below.
CIPP response to the HMT Travel and Subsistence: discussion paper
HM Treasury gathers evidence on the use of salary sacrifice and flexible benefit arrangements 22 December 2015
The CIPP has worked with HM Treasury to publish a survey to gather evidence and views from members on the use of salary sacrifice and flexible benefit arrangements.
Remuneration packages are important to both employers and employees and can be made up of a mixture of cash and non-cash benefits in kind. Non-cash benefits can often play a vital role in attracting or retaining employees. In recent years the market for voluntary or flexible benefit packages has grown and remuneration is often combined with salary sacrifice arrangements. The latter is where an employer and employee agree to change the terms of the employment contract and reduce the employee’s cash pay in exchange for non-cash benefits-in-kind. These can allow some employees and employers to reduce the income tax and National Insurance contributions (NICs) that they pay on remuneration. At Autumn Statement 2015, the government announced that it remains concerned about the growth of salary sacrifice arrangements and their cost to the taxpayer. The government said it will gather further evidence, including from employers, on salary sacrifice arrangements to inform its approach. The CIPP has worked with HM Treasury to publish this survey to gather evidence and views from members on the use of salary sacrifice and flexible benefit arrangements. It should take no longer than 20 minutes to complete and taking part in the survey will provide CIPP members with an opportunity to help inform government thinking.
The survey closes on Friday 22nd January. All responses are anonymous.
CIPP survey on employer provided living accommodation 4 January 2016
The CIPP has published a survey in response to the government’s call for evidence on employer provided living accommodation.
A call for evidence has been published to find out what complexities employers currently face and what, if any, simplification could be made.
Employer provided living accommodation is a benefit in kind and is liable to tax and employer Class 1A National Insurance contributions. The current rules setting out how and when employer provided accommodation should be taxed have been in place for a long time, and some parts are over 40 years old. The government would
CIPP Policy News Journal
25/04/2016, Page 151 of 453
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