Policy News Journal - 2016-17

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

There are many questions posed within the consultation paper which is available to read on GOV.UK. The questions range widely from:

 Do you agree that removing the requirement to agree the items in a PSA will provide simplification for employers? - through to;  What other safeguards could/should be considered to guard against possible abuse of PSAs and are there any compelling reasons/scenarios which do not fit into the rules as set out above that employers feel the PSA process should be amended to include?

Responses can be submitted directly to PAYE.policy@hmrc.gsi.gov.uk by 18 October 2016.

Alternatively, you may prefer to share your thoughts, experience of processing PSAs and comments with the CIPP Policy team to feed in to the written response that will be submitted. If so, please contact Samantha Mann, CIPP Senior policy & research officer via policy by 17 October 2016. In advance of your email - Thank you.

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CIPP response to the consultation on alignment of dates for ‘making good’ on benefits-in-kind 5 October 2016

The CIPP has submitted its response to the consultation on alignment of dates for ‘making good’ on benefits-in- kind.

It was announced at Budget 2016 that the government would consult on proposals to align the dates by which an employee has to make a payment to their employer in return for a benefit-in-kind they receive, in order to ‘make good’.

The aim is to have a simpler and clearer system that makes it easier for employers and employees to understand their obligations.

The CIPP’s Policy & Research team published a survey to gather views on the proposals which would inform the CIPP’s response to this consultation. Respondents were largely in favour of the suggestions, with the key findings being:  83% of respondents agreed that the date for making good for company cars, company vans and the other benefits-in-kind set out in the consultation document should be the end of the tax year.  90% agreed with the suggested date of 1 June following the end of the tax year as the making good date for car and van fuel benefit, credit tokens and beneficial loans.  88% of respondents agreed that interest paid after the benefit-in-kind has become final and conclusive should be taken into account for employer-provided loans.

You can download the CIPP’s full consultation response below.

CIPP response to the consultation on Alignment of dates for making good on BiKs

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Expenses and benefits returns on magnetic media (EEC1) 4 October 2016

The guidance on how to submit returns to HMRC on magnetic media has been updated to apply to live filing submissions from 6 April 2017.

Employers and payroll bureaux have an option to submit expenses and benefits (P11D) on magnetic media to HMRC. Submitting returns this way means quick automatic processing and cuts out manual keying by HMRC. As a result employees’ tax code numbers are reviewed automatically and accurately updated quicker when compared with paper returns.


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