CIPP Payroll: need to know 2019-20

With still no sign of the 2020-21 National Insurance rates and thresholds being published there is increasing concern that software developers and payroll departments will not have sufficient time to plan and prepare for any changes.

Earlier this week the CIPP discussed the issue with HMRC, and the CIPP has now contacted relevant high level government ministers stressing the urgency of this matter and urging them to publish the National Insurance rates and thresholds along with the statutory payment rates as soon as possible.

As soon as the information is available we will let you know.

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Scottish budget plans to be confirmed on 6 February 2020 16 January 2020

The Scottish government will release its draft budget plans on 6 February 2020. Although Sajid Javid’s UK budget is not being held until 11 March, the Finance Secretary, Derek Mackay, confirmed it would have been “impossible” to wait for the UK budget because councils and public services need confirmation in relation to funding levels. A spokesman for the Treasury explained that it would work alongside Scottish ministers to give the fiscal information required. The intention is that the budget bill will pass through Scottish parliament within the space of a matter of weeks, to ensure that royal assent is granted with enough time for new tax arrangements to be implemented at the start of the new tax year.

Ordinarily, Mr Mckay would wait for the details of the UK budget to be released prior to announcing what his own plans are but commented:

"In these exceptional circumstances, created by the UK government, it is vital we give local authorities and public services clarity on their budgets. That is why we have made the decision to publish our budget in February which wil l allow local authorities to set their budgets and council tax before the legal deadline of 11 March. I look forward to publishing a budget that will help tackle the global climate emergency, reduce child poverty and boost the economy." He added that the timing of the UK budget was "completely unacceptable and has shown a disregard for devolution" but the UK government has maintained throughout that it can provide Scottish ministers with sufficient relevant information which would allow them to schedule a budget in a timeframe convenient for them.

The BBC confirmed that a spokesman for UK government said:

"Nothing stops the Scottish Parliament from passing their budget before the UK budget. We are working with the Scottish government as part of an agreed process to provide the information they need to prepare their budget. At the spending round, we announced that the Scottish government's block grant will increase by £1.2bn next year."

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New £10 weekly Scottish Child Payment to help approximately 170,000 children 20 January 2020

On 26 June 2019, the Scottish government announced that it would be using its devolved powers to offer a new benefit of £10 per week per child for children in lower income families.

The intention is that, from December 2020, the payment will be provided to all eligible families in Scotland with a child / children under the age of six, and this will extend to include all eligible families in Scotland with a child / children under the age of 16 by the end of 2022.

Families will be able to apply for the extra support, paid in addition to any child benefit payments, from Autumn 2020 by phone, online or in writing. It is hoped that by allowing applications to be made in advance in the Autumn, ahead of

The Chartered Institute of Payroll Professionals

Payroll: need to know

cipp.org.uk

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