POLICY HUB
On your behalf
As the saying goes, ‘April showers bring May flowers’, and with those flowers came a handful of bank holidays. Many of us were fortunate enough to have some time off last month, however the May bank holidays didn’t hold up the CIPP’s policy and research team. Here's what they got up to... Policy team update
feedback the policy team gathers will be used to respond to the consultation on behalf of payroll professionals and the wider industry. Editor of Professional magazine, Lora Murphy was joined by Susan Ball, tax partner at RSM UK and President of the Chartered Institute of Taxation and Lee Knight, director at RSM UK. This was for a BeKnowledgeable session discussing the complexities of the construction industry scheme (CIS), focussing on how payroll experts can handle the nuances of the scheme. The aim of the session was to help identify who needs to register, as well as how to operate the scheme and which payments are caught. More specifically, the following key points were addressed: l purpose and background of the CIS l importance of establishing employment status and off payroll working / IR35 l scope of the scheme – what’s in, what’s out? l difference between mainstream contractors and deemed contractors l verification process and compliance requirements l paying of subcontractors and processing the deduction of tax l consequences when mistakes are made, including the penalties for getting it wrong l registration and cancellation of registration. Policy lead, Samantha O’Sullivan represented the CIPP at Accountex London, delivering a valuable 2023/24 legislative update. This event brought together over 250 top fintech companies and updated professionals with all the latest knowledge and information regarding industry products and trends. Sam also presented at the Shared Services Forum UK, who held a collaboration week in May. The event included a legislative update, covering
relevant case law and helpful reminders to ensure businesses, intermediaries and professionals remain compliant. Sam also hosted an event for the payroll services specialist interest group (SIG). This was the second event for the SIG, covering the latest consultations and HMRC changes, also incorporating a session on hiring payroll apprentices within a bureau. In addition, the policy team hosted an event for the Institute of Chartered Accountants of Scotland on expenses and benefits, which was delivered by the CIPP’s payroll training manager, Fiona Smith. The session aimed to keep the audience up to speed with the rules following the abolition of paper P11Ds and P11D(b)s to HMRC in 2023, and payrolling benefits.
Events Policy and research officer, Meena Salhan began the month by facilitating two think tanks in relation to the recent Low Pay Commission (LPC) 2023 consultation on national minimum wage (NMW) rates for 2024. Next year is set to be a year of big change for the national living wage (NLW) in particular, as it will become applicable to anyone aged 21 and over (currently it applies to anyone aged 23 and above). NLW rates can have a substantial impact on those who are low paid, but any labour market implications of an increase or expansion of the rate also need to be carefully considered. The LPC is keen to understand what effects the proposed change could have and the impacts of recent changes to the NLW. The think tanks were led by LPC representatives and attended by stakeholders from a range of different sectors. Our other policy and research officer, Mathew Akrigg conducted a think tank on the consultation titled, ‘ Simplifying and modernising HMRC's income tax services through the tax administration framework ’. This was led by a representative from HM Revenue and Customs’ (HMRC’s) tax administration framework (TAFR) simplification team and proved to be highly popular with CIPP members. With the closure of the Office for Tax Simplification, HMRC now has a responsibility to ensure it considers simplification in its processes. Within this consultation, HMRC is seeking views on improving pay as you earn processes and self-assessment criteria. Such a review is bound to create movement in the payroll profession. This is incredibly important for the CIPP, as the
Watch this space… Following the government’s
announcements on ‘tax administration and maintenance day’ (TAMD), the policy team have been working at full speed. This has involved arranging sessions and doing plenty of reading, to ensure we respond to consultations which impact the payroll profession. This will allow members to have their say, and the team will be releasing quick polls and surveys, while also holding think tank sessions. Be sure to keep a look out for notifications, which will be published through the CIPP’s various social media accounts. Also, flick to our hot topic article this issue to find out more about TAMD. n
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| Professional in Payroll, Pensions and Reward |
Issue 91 | June 2023
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