Policy News Journal - 2015-16

What payroll information to report to HMRC 8 May 2015

HMRC has updated their guidance to clarify the use of unique payroll IDs and when to set the payroll ID changed indicator.

Follow the link below for full details.

What payroll information to report to HMRC

CWG2 updates 12 May 2015

The employer helpbook CWG2: Further guide to PAYE and National Insurance contributions has been updated.

The changes to the CWG2 are under Chapter 1 on page 4 – amendment to who is treated as an employee for NICs purposes and under Chapter 2 where a new section 24a on page 21 has been added to reflect the new pension flexibilities.

Follow the link below to download the CWG2. 2013-14 and 2014-15 editions are also available.

CWG2: Further guide to PAYE and National Insurance contributions

CIPP response to HMRC Discussion Document on Penalties 12 May 2015

In February 2015 HMRC published a discussion document to consider how they can change how penalties are applied as they transform their services to deliver more through Digital technology.

The publication HMRC Penalties: a Discussion Document is the first stage of consultation which asked for comments on how the application of penalties may be changed to better differentiate between deliberate and persistent non-compliers and those who might make an occasional error for whom alternative interventions are more appropriate.

The purpose of the discussion is to seek views on the policy design and any suitable possible alternatives, before consulting later on a specific proposal for reform.

The CIPP Policy Team ran a survey to collate your views and experiences and we received a total of 45 responses, 6 from non-CIPP members.

Response summary The CIPP response largely focuses on experience and opinions relating to PAYE automatic late filing and risk assessed late payment penalties. Respondents believe that a fair penalty regime is a critical element to a successful tax administration. The concerns relate less to the look and feel of a penalty regime and more with the accuracy of the underlying systems that generate a reason for the issue of a penalty.

In section 5.10 of the discussion document it states:

".. .any changes would need to take account of, and be dependent on, HMRC's developing IT capability…"

It is precisely HMRC's developing IT capability or capability to develop IT that has seen the most comment in relation to the adaptation of any new policy with regard to the penalty regime.

1) We welcome the three day delay initiative that was announced shortly after late filing penalties were introduced however and unsurprisingly concerns were expressed about how, for some, deadlines are key and therefore some form of limitation to this three day relief, for example, to two or three occurrences in any one tax year would act as an incentive not to abuse this extension and to prevent it becoming simply an ‘alternative deadline’ for some employers to work to.

CIPP Policy News Journal

25/04/2016, Page 268 of 453

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