Professional November 2016

Policy hub

averse engagers. Further research, based on known workings of the digital tool along with informed decision making on the additional processes required (by both engager and PSC, and agency where applicable) would be needed in order to quantify actual costs. implementation until April 2019 and an expansion to all engagements caught by IR35 to include the private sector. This would provide ample time to design, build and thoroughly test the new digital tool. This can only be achieved with a measured and unrushed delivery. A staggered approach, first to the public sector and then to the wider private and third sector, will cause unnecessary complexity and do little to aid wider understanding of IR35. Transferring the burden to all engagers would provide consistency across the board. IR35 is viewed as a specialist area by the majority of payroll professionals who will need to become knowledgeable by the delivery time line. News and information must be promoted to the wider public sector engager community and their agents as a matter of urgency to alert them to the need to adapt and strengthen their internal processes and to begin collecting the data that will enable payroll departments to process ‘deemed payments’. In addition, it needs to be recognised that there may be a delay in collating all information so not all deemed payments that are processed via real time information (RTI) may be reported ‘on or before’. An appropriate late RTI submission reason code should be added to allow for the increased and legitimate risk of this occurring as quite often in a large organisation the decision maker may be remote from the engager. Thank you to everyone who took the time to respond to this survey. The full response can be accessed through our website www.cipp.org.uk under My CIPP/Policy Hub/Consultations. Claiming tax relief for employees One of the topics covered when policy Recommendations We ask both for a delay in

attended the Employment and Payroll Group (EPG) meeting in the summer, was feedback on the tax relief claiming process, where employees have used their own money for business-related expenses and not been reimbursed by their employer. To understand customer experience, HMRC spoke to a wide range of stakeholders including employers at the Taxpayer Data Standards Forum (TDSF) and the voluntary charity sector and carried out research with taxpayers. Two main blockers to claiming tax relief from HMRC were highlighted: the complexity of the current guidance; and the challenges of the claim process itself versus the actual value of the amount claimed to the employee. Stakeholders confirmed that flat-rate expenses are the most common claims for employment expenses. Research shows that some customers have turned to high volume repayment agents (HVRA), which take up to 40% of the refund in fees and commission, to claim tax relief on their behalf. Of those consulted, many believe more taxpayers will claim directly if HMRC simplified their guidance and improved the claim process. HMRC has acted quickly to enable customers to claim tax relief for free. The P87 form (for claiming employment expenses online) has been made easy to complete and submit, and customers can save and retrieve information online and track progress of their claim. The P87 form also improves data accuracy as it rejects erroneous information such as National Insurance numbers in an incorrect format. information online and track progress of their claim Tax relief can be claimed via the new personal tax account: open the PAYE section, click on ‘Tax relief for expenses of employment’ and send the P87 form to HMRC online. We encourage everyone to register and to access their personal tax account. Personal and tax related records can be checked and details managed with HMRC. Go to www.gov.uk/personal-tax- account to register. ...can save and retrieve

Training course

Certificate in Payroll Practice

This course is aimed at both new people who require an introduction to payroll, and those already working in the profession, who want to refresh their skills and gain confidence within their role. Delivered over three days via classroom learning, this course covers a range of topics from core payroll skills, through statutory payments and associated legislative changes, and concluding with deductions from pay and the interaction between payroll and other internal and external bodies.

For full details or to book your place, please visit cipp.org.uk , email training@cipp.org.uk or call 0121 712 1063 .

Counts towards CPD

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Issue 25 | November 2016

| Professional in Payroll, Pensions and Reward |

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