CIPP comment The CIPP policy team will be publishing a survey to gather the views of payroll professionals and others with a vested interest. We also plan to hold a Policy Think Tank roundtable meeting which will be open to full, fellow and chartered members – to note your expression of interest please email us at policy.
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CIPP webcast on employment allowance changes from April 2020 29 July 2019
Spend a worthwhile ten minutes to find out what you need to know about the employment allowance (excluded persons) regulations 2019 and specifically what the changes mean for employers with a secondary NICs bill of less than £100,000. Diana Bruce, CIPP Senior Policy Liaison Officer provides an overview of the changes that the draft regulations will bring if enacted and explains about the unintended consequence of employers and payroll professionals needing to know about ‘de minimis state aid’ for RTI reporting purposes.
CIPP webcast on employment allowance changes from April 2020
Visit My CIPP on our website for other topical webcasts - an easy way to update your team on aspects of payroll legislation.
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National Insurance Contributions (Termination Awards and Sporting Testimonials) Act 2019 29 July 2019
This ‘Act’ provides for Class 1A NICs on certain termination awards and for the controller of a sporting testimonial to be the person liable to pay Class 1A NICs on payments from money raised by the testimonial, from 6 April 2020.
The National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill was introduced into Parliament on 25 April 2019 and received Royal Assent on 24 July 2019, to become the National Insurance Contributions (Termination Awards and Sporting Testimonials) Act 2019.
Geographical extent – The Act makes corresponding changes for Great Britain and Northern Ireland, ensuring that these changes apply throughout the United Kingdom.
The Act introduces an important simplification of the tax system that helps to more closely align the Income Tax and NICs treatment of termination awards and sporting testimonials. Currently, the fact that termination awards and sporting testimonials are subject to different Income Tax and NICs treatment creates confusion.
These changes will close a loophole in the tax system. The current misalignment incentivises well advised employers to disguise final payments as compensatory termination payments that benefit from a NICs exemption.
This Act introduces a new 13.8% Class 1A Employer NICs charge to any part of a termination award or payment from a sporting testimonial, that are already Income Tax liable. Any income derived from termination awards or sporting testimonials will remain free from Employee NICs.
The government confirmed at Budget 2018 that these measures would take effect from 6 April 2020 .
Termination Awards
The Chartered Institute of Payroll Professionals
Payroll: need to know
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