Policy News Journal - 2015-16

The survey also considers the Government’s latest proposals on changes to tax relief for travel and subsistence for workers supplied by employment intermediaries.

We will produce a summary report of the survey results to send to HMRC with our submissions on the consultations.

The survey should take no longer than 5 minutes to complete – thank you for your time.

Employment status: employment intermediaries guidance 25 September 2015

Find out if you're an employment intermediary and what you need to do to make sure your worker's tax and National Insurance is paid correctly.

An employment intermediary is a person or business who makes arrangements for someone to work for a third person, often known as an ‘agency’ or ‘employment business’.

You’re an employment intermediary if you supply workers to work for an end client or another employment intermediary, and the client then pays you or someone connected to you for the worker’s services. The end client is who the worker does the work for.

Employment intermediary guidance has been published on GOV.UK and includes:

 Who is an employment intermediary  Your tax and National Insurance obligations  Agency rules  More than one employment intermediary in a contractual chain  Workers supplied to work outside the UK  Workers supplied to a non-UK employer or agency with no UK presence  UK Continental Shelf workers  Reporting requirements for employment intermediaries who don't need to operate PAYE

Employment Intermediaries and Tax relief for Travel and Subsistence – CIPP response to HMRC 5 October 2015

CIPP has submitted its response to HM Revenue & Customs to feed in member views and opinions on the subject of Employment Intermediaries and tax relief for Travel and Subsistence.

The CIPP Policy team joined with BDO LLP in surveying stakeholders to gather views on the subject of tax relief for Travel & Subsistence.

The consultation Employment Intermediaries and Tax Relief for Travel and Subsistence ran from 8 July and laid out a proposal that would see the removal of tax relief for workers travelling to their workplace where they are:

 Supplying personal services  Engaged through an employment intermediary (including umbrella companies, certain employment businesses and personal service companies) and  Subject to (or to the right of) the supervision, direction or control or any person.

The timescale being worked to by HMRC is to see changes being implemented with effect from 6 April 2016.

The aspiration of HMRC to ‘level the playing field’ of workers as a principle is supported by the survey findings, which upheld fairness above all. We are extremely concerned however, at the timescale for delivery, which is short, even to an industry that is more than familiar with change. We believe also that if, as HMRC appear to be suggesting, there is currently widespread abuse, through the delivery of non-compliant schemes that HMRC should look to be both consistent and visible with its enforcement activity.

CIPP Policy News Journal

25/04/2016, Page 312 of 453

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