Payroll insight
third party, in a way that would otherwise be considered an employment or office holding if the person was directly engaged. A public authority includes all local authorities, police and crime commissioners, fire authorities, central government departments and others. For the purposes of the new rules a PSC is a company where a worker has a material interest of more than 5%, whilst a partnership is within the rules where the worker takes more than 60% of the profits or the majority of income arises from a single client. A new online tool – the employment status service (ESS) – will be available from mid-March for engagers (and others) to determine whether an individual is employed or self-employed. This will ask a series of questions about the engagement and working practices and, we have been informed, will usually arrive at a more definitive conclusion than the current employment status indicator (ESI). Early testing versions of the ESS have shown that there are similarities with the ESI; however, there are additional questions to incorporate the new rules
for public bodies. For example, the public body will have to determine whether a worker in a PSC has more than 5% shareholding and will have to rely on the information provided to it by the PSC. The new rules should protect the public body from any PAYE/NICs responsibilities if the PSC (or other intermediary) provides incorrect information. ...including the need to ensure that those engagements that are in scope
such as pensions automatic enrolment or national living/minimum wage. If the worker is paid by another intermediary in the UK, such as an agency, then that body is responsible for accounting for PAYE/NICs rather than the public body; however, the public body must still notify the other intermediary that the engagement is in scope. Also, if an intermediary asks the public body if the engagement is in scope, the public body must respond within 31 days. If it does not so respond, the public body would be required to account for PAYE/ NICs. These rules impose a number of obligations upon public bodies including the need to ensure that those engagements that are in scope are correctly identified, and that payroll and payments procedures are aligned and staff are suitably well-trained to administer these complex new rules. With the final version of the ESS due to be released to the general public potentially as late as mid-March, there is sure to be some across the board ‘last minute’ activity as public bodies seek to comply from April onwards. n
are correctly identified...
Where the public body pays the PSC or partnership within the above definition they must make a deduction of PAYE/ NICs and account for the apprenticeship levy on the payment; however, the public body is not required to make statutory payments (e.g. statutory sick pay) and has no other employment obligations
Apprenticeship levy and funding
This course covers: l Background l Apprenticeship levy l Apprenticeship funding arrangements in England l Apprenticeship funding arrangements in the rest of the UK l Future developments This course is designed to introduce delegates to the apprenticeship levy that comes into effect from April 2017. The course also covers the devolved funding arrangements across the UK. Half day
Book online at cipp.org.uk or email info@cipp.org.uk for more information.
cipp.org.uk @CIPP_UK
CPDACCREDITED2017
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Issue 29 | April 2017
| Professional in Payroll, Pensions and Reward |
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