results. It was decided to wait for progress on other changes to the tax system that employers were implementing (for example on Real Time Information and the Scottish Rate of Income Tax) before consulting further on aligning the operation of income tax and NIC. The OTS’s subsequent UK Competitiveness Review and Employment Status report both returned to the issue of IT/NIC alignment. Both reports reiterated the difficulties caused by the differing systems; closer alignment was seen as a way of improving competitiveness and as the main indirect way of ‘solving’ employment status problems. The impact of the employers’ NICs was seen a major issue in both cases.
Simplification of the tax and National Insurance treatment of termination payments 27 July 2015
A consultation has been published asking for views on how the tax and NICs treatment of termination payments can be made simpler and fairer.
The government is considering how they can make the tax and National Insurance contributions (NICs) treatment of termination payments simpler and fairer and wants to hear your views on how that can be achieved.
The consultation particularly seeks views on:
removing the distinction between contractual and non-contractual termination payments and whether this will make it easier for employers and employees to understand the design of the new exemption from income tax and NICs whether the income tax and National Insurance treatment of termination payments should be aligned which of the existing exemptions which remove the liability to income tax should be retained and whether any new exemptions should be introduced.
The consultation will run until 16 October 2015.
CIPP comment As you would expect the Policy Team will be involved with this consultation and will most certainly be asking for your opinions over the coming weeks so keep an eye out for another survey.
HMRC online services 28 July 2015
If you use HMRC’s online services, be aware that from 10 August 2015 you will need JavaScript enabled to log in to your online account.
A message has been published on the HMRC Online services login page saying that from 10 August 2015 you will need JavaScript enabled to log in to your online account.
You will get an error message if you try to log in without this. This can usually be enabled within your browser settings. To do this, search "enableJavascript" on your internet browser.
Review of the taxation of small companies 29 July 2015
The Office of Tax Simplification (OTS) has agreed to carry out a review of the taxation of small companies. The overall aim of the project will be to develop recommendations on how to simplify the system, increase certainty and reduce administrative burdens caused by the tax system.
The review will build on the OTS’s earlier work on simplifying the system for unincorporated businesses . The OTS will provide an initial report to the Chancellor by Budget 2016 that:
CIPP Policy News Journal
25/04/2016, Page 278 of 453
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