CIPP Payroll: need to know 2019-20

As published in the CIPP’s News Online, the original proposals by the government for individuals being granted either settled or pre-settled status was that they would be provided with digital proof, and not physical evidence to show their right to work status within the UK. This was not met favourably by many of those affected, and HR and payroll professionals also voiced their concerns about these proposals. The House of Lords has since voted in a way that guarantees that EU citizens will be provided with physical documents as proof of their settled status by backing an amendment to implement a registration system that ensures this. The amendment secured 270 votes for and 229 against it, meaning it was backed by a majority of 41 peers. The amendment was initially suggested by Liberal Democrat peer, Lord Oates, who asserted that without physical proof, EU citizens entitled to remain in the UK would be “severely disadvantaged” and that it would lead to “confusion” and “anxiety” for those impacted. This echoed concerns of the EU who warned that post-Brexit, EU nationals will face increased risk of discrimination, which would only exacerbated by the lack of physical documents to prove their status. The European Union (Withdrawal Agreement) Bill or WAB, supported by Boris Johnson’s large conservative majority, passed through the Commons with relative ease but it is expected that there may be some resistance in the upper chamber, where the numbers are significantly lower.

Inews reported that former civil servant, Lord Kerslake advised that providing physical proof of settled status would not delay the UK’s departure from the EU.

The CIPP will continue to provide updates on the situation in relation to proof of settled and pre-settled status, so that our members are aware of the expectations placed upon them in relation to right to work documentation and what they need to check for.

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The Department for Work & Pensions releases guidance relating to the State Pension for individuals living in the EEA or Switzerland post-Brexit 29 January 2020

The Department for Work & Pensions (DWP) has published guidance relating to the rights of UK nationals living in the EEA and Switzerland to benefits and pensions after the UK has left the EU.

The UK is set to leave the EU on 31 January 2020, and The Withdrawal Agreement presents the terms of the UK’s withdrawal from the EU, and includes provisions for a transitional period up until 31 December 2020 in which no changes will take place. In this time, there will be no difference to the rules on claiming UK benefits and State Pension in the EEA or Switzerland.

Guidance relating to the State Pension for those living in the EEA or Switzerland by 31 December 2020

The guidance asserts that individuals moving or retiring abroad prior to, or on 31 December 2020 (within the transition period) will need to notify the relevant government office of this. They will still be able to receive a UK State Pension if they live in the EEA or Switzerland, and it can still be claimed from these countries. DWP has confirmed that the UK State Pension for these people will continue to be uprated each year for as long as they continue to live there, and this will happen even if the individual starts claiming their pension or on after 1 January 2021, subject to the standard qualifying conditions. This means that they will continue to receive increases under ‘triple lock’ rules.

Whilst working in the EEA or Switzerland, individuals can count future social security contributions towards meeting the qualifying conditions for their UK State Pension.

Guidance relating to the State Pension for those moving to an EEA State or Switzerland from 1 January 2021

For individuals who are not covered by the Withdrawal Agreement who move to live in an EEA state or Switzerland from 1 January 2021 onwards, the guidance is not as straight forward. The outcome of negotiations with the EU may result in direct changes to the rules surrounding entitlement to UK benefits within those countries, which could directly impact on whether future social security contributions in the EEA and Switzerland count towards the UK State Pension.

The Chartered Institute of Payroll Professionals

Payroll: need to know

cipp.org.uk

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