CIPP Payroll: need to know 2019-20

An example would be uniforms. This subject has relevance to the employer from a tax and NIC reporting perspective, to the employee from a tax relief perspective and for the self-employed, from an allowable expenses perspective. However, the rules surrounding uniforms from a tax and NIC perspective can be complex to understand. Compare this to the broad definition used when describing a uniform for NMW purposes, and an area for error and mistake quickly arises. Deductions from pay for pay attachments issued by the courts and others, also give rise to error as HMRC have strictly defined these as deductions made ‘for the benefit of the employer’ and yet, because they are permitted to be made - as highlighted in the pay attachment notice, the unwary employer falls foul where the employee is paid at or around the NMW rate. This continues to capture the unwary. Guidance and educational materials should cover the different impact that varying policies have on common themes and subjects – this would be a new provision and require significant cross-government working. Stakeholders could provide significant help in this endeavour.

Sectoral guidance

The technical operation of NMW (and PAYE and NIC) does not largely vary across sectors. However, useful directed case studies and examples within guidance and information (whatever media is used) could aid the employer to understand and apply the rules correctly as explained in BEIS guidance. Particularly where that guidance is in HTML format online.

Impact of legal rulings

Where court rulings set legal precedence, the impact on the operation of NMW (and other subjects) should be made clear by BEIS and HMRC at the earliest opportunity. Media campaigns should be used to raise wide awareness of the impact, together with prompt updates to operational guidance and education materials. The delays that have been experienced in recent years across many policy subjects are unacceptable. Whilst the media should not be relied upon to cascade critical technical information without direction (which can lead to mis-information and confusion), neither BEIS nor HMRC fully utilise the efficiency of stakeholders to cascade important and accurate messages and updates in the interim, while they work to update their library of employer information, education, support materials and resources.

Stakeholders and employer support mechanisms

When an employer takes on their first employee or worker, no longer can they work to comply in isolation with the myriad of legal obligations that is placed on them.

The Chartered Institute of Payroll Professionals

Payroll: need to know

cipp.org.uk

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