Policy News Journal - 2015-16

Within the Apprenticeships Levy consultation only one question (of the 23) is relevant to payroll and that is the one asking for comments on the proposal that the levy should be collected through PAYE.

We have also taken the opportunity in our survey to ask for your comments on the new definition of an apprenticeship, as funding will only be available for apprenticeships which meet an approved framework. It will become illegal to call an apprenticeship an apprenticeship that does not meet the criteria.

The survey should take less than 5 minutes to complete and will close on 28 September 2015. Thank you.

Specifications for substitute forms P60 for 2015-16 11 September 2015

HMRC has published specifications for employer substitute forms P60 - End of Year Certificate.

This guide gives information on how to design substitute forms P60, which employers may use instead of the official form at the end of the tax year. It also includes information on how to adapt the substitute form P60 for a pension fund scheme and what to do if the intention is to issue the substitute form P60 to your employees electronically.

Guidance on employing someone to work in your home 17 September

HMRC has substantially revised their guidance on employing someone to work in your home.

Previous guidance on GOV.UK was very misleading regarding employing someone in your home, specifically nannies and au pairs as it implied that they could be self-employed. This is not the case and HMRC has reviewed all the guidance on this area and has updated it to accurately advise on employment status for domestic workers.

GOV.UK revised guidance: Employing someone to work in your home .

HMRC penalties: a discussion document - summary of responses 18 September 2015

HMRC has published their response to the discussion document which considered how they can change how penalties are applied as they transform their services to deliver more through digital technology

Background HMRC published HMRC Penalties: a discussion document in February 2015 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 being to seek views on the policy design and any suitable possible alternatives, before consulting later on a specific proposal for reform.

The discussion document proposed five broad principles that HMRC consider should underpin any new penalty regime:

 The penalty regime should be designed from the customer perspective, primarily to encourage compliance and prevent noncompliance. Penalties are not to be applied with the objective of raising revenues.  Penalties should be proportionate to the offence and may take into account past behaviour.  Penalties must be applied fairly, ensuring that compliant customers are (and are seen to be) in a better position than the non-compliant.  Penalties must provide a credible threat. If there is a penalty, we must have the operational capability and capacity to raise it accurately, and if we raise it, we must be able to collect it in a cost-efficient manner.  Customers should see a consistent and standardised approach. Variations will be those necessary to take into account customer behaviours and particular taxes.

CIPP Policy News Journal

25/04/2016, Page 284 of 453

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