Policy News Journal - 2016-17

The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal

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Helping employees access tax relief 7 July 2016

The June edition of the Employer Bulletin contained an article on tax relief that employees might be eligible to claim. As we approach the time of the year where we raise awareness and celebrate the value of the payroll function with National Payroll Week, you can help to ensure that your colleagues or the employees of your clients don’t miss out on these valuable reliefs.

‘Your employees may be able to claim tax relief if they have to use their own money, and you haven’t reimbursed them, for travel or things that they must buy for their job. For example:

 cleaning, repairing or replacing specialist clothing, for example, a uniform or safety boots  travel and overnight expenses  professional fees and subscriptions paid to some approved professional organisations  business mileage, where an employee uses their own vehicle or fuel costs, if using a company car  repairing or replacing small tools

It’s free and easy to make a claim through HMRC. They just need to fill in a form P87.

If they have a Personal Tax Account your employee can access and send form P87 to HMRC online by opening the Pay As You Earn (PAYE) section, and clicking on ‘ Tax relief for expenses of employment’ .’

Alternatively employees can access a form P87 on GOV.UK.

If you utilise your payslips for the communication of important messages to your employees and you think that your employees could benefit from knowing about these reliefs have you considered letting them know with the following payslip message: “Looking to claim tax relief on work related purchases, mileage or cleaning uniforms? To use HMRC services for free , see www.gov.uk/tax-relief-for-employees ”

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ONS Economic review July 2016 7 July 2016

The ONS have published their monthly commentary on the latest GDP estimate, labour market conditions and other economic issues.

The main points highlighted at the outset of the report include the findings that Male and female unemployment rates were both 5.0% in the three months to April, following the sharper fall in male unemployment than female unemployment since early 2013. This is the first time male and female unemployment rates have been the same since records began. Whilst the latest estimate of GDP growth in the first quarter of 2016 remained unchanged at 0.4%, although the level has been revised down fractionally. This quarter’s growth marks an easing in the pace of growth in recent quarters – during 2015 quarterly growth averaged 0.5%. The annual cycle of Blue Book improvements and revisions has resulted in both upward and downward revisions to annual GDP growth for the past six years, but the broad path of the recovery is broadly unchanged. GDP is now estimated to be 7.0% higher than the pre-downturn peak (Q1 2008), rather than 7.2% as previously estimated. The saving ratio has been revised up in 2014 and 2015 – partly due to new HMRC information on wages and salaries. As a result, the downward trend in household saving appears to have slowed somewhat compared with previous years.

There has been a divergence between services and goods inflation, with services price inflation being relatively stable, around 2.5% since late 2013 - not far below its long-term average of 3.6% between 1994 and 2013.


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