Guidance surrounding a ‘key facts page’ for agency workers published by HMRC 11 October 2019 Gov.UK have released information pertaining to the new requirement for employers to present agency workers with a ‘key information document’ prior to agreeing terms. This requirement will be implemented from the start of the new tax year and has been stipulated in the Conduct of Employment Agencies and Employment Businesses Regulations 2003. There will be no obligation for agency workers that have a pre-existing contract prior to 6 April 2020 to receive the ‘key information document’ but any new appointments will have to adhere to the upcoming legislation. The purpose of the document is to ensure further clarity for agency workers in terms of what pay they can expect to receive and what deductions will be applied to eventually arrive at their take-home pay figure. The intention is that they will have access to this information prior to entering into any binding agreements. For statutory deductions, the acknowledgement that they will be taken is sufficient but for non-statutory deduction elements, such as the fee for working via an umbrella company, either fixed figures should be provided or alternatively, the calculation that will be used to arrive at the relevant figure. If the worker is employed via an umbrella company, the ‘key information document’ must be provided to both the worker and to the intermediary.
The publication expands on the points above in much further detail, and is divided into seven sections as follows:
• Format, timing and frequency of key information documents • Information to include for a standard employment business – agency worker relationship (i.e. PAYE) • When additional information is required for the key information document • Information to include when an intermediary or umbrella company is involved • Key information documents for workers signing on as personal service companies • Changes to key information documents • Enforcement of the new regulation
There are also templates to assist employers with the new process, which cover a range of scenarios.
CIPP Comment
The policy team always welcome member feedback and would particularly welcome any comments that you might have about the impact of the new legislation outlined above and any challenges that it may pose. Please email policy with any thoughts you may have. Thank you.
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OTS publish guidance surrounding the simplification of tax 14 October 2019
The Office of Tax Simplification (OTS) have provided information relating to landmarks in life that may affect an individual’s tax circumstances, and offer advice to the government on how to simplify the highly confusing policies and tax implications currently surrounding these areas. The document is a follow up to the advice on simplifying tax for smaller businesses, which was released by the OTS back in May 2019. The 92-page document addresses a variety of scenarios that most people experience over the course of their lifetimes, but which are classed as ‘key life events’, and aims to simplify the tax treatment that occurs as a result of these situations. The key life events that attract coverage in the guidance relate to having children, entering work, changing jobs, saving for or drawing a pension, and supporting others who are less able to take care of their own affairs. The article offers 15 clear and concise points on how the government should proceed and relates them back to the life event areas. All the suggestions would ideally uncomplicate some complex areas that baffle the general public, who aren’t professionals in tax, or indeed, its application. Some key areas addressed include the High-Income Child Benefit
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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