The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
applies. This will be corrected at the earliest opportunity. Once the legislation has been corrected, the guidance will be updated.
There will be a corresponding amendment made to the Social Security (Contributions) Regulations 2001 (SI2001/1004) for national insurance contributions purposes.
For practical purposes, HMRC does not consider that this correction will alter the ultimate result for the vast majority of workers currently engaged through employment intermediaries, including umbrella companies. Those who are working under supervision, direction or control will, in most instances, be akin to those who are an employee.
Where a worker is engaged through what is commonly known as a personal service company (PSC) (including a managed service company (MSC)), then the rules will remain unchanged.
Travel and subsistence expenses for workers engaged through 'employment intermediaries' from 6 April 2016
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Off-payroll working in the public sector - reform of the intermediaries legislation 31 May 2016
Budget 2016 announced proposals to reform the off-payroll rules for personal services companies working for a public sector engager. A consultation has now been published.
This consultation is about reforming the intermediaries legislation to improve its effectiveness in the public sector. It seeks views on the impacts of this change and design details of the policy, including a new process to help determine whether an intermediary is in scope of the rules.
The consultation asks for opinions on:
the scope of the reform of the intermediaries legislation how the reformed rules will work ways to minimise burdens on engagers who are affected.
Also included is a summary of responses to the discussion paper published in 2015 .
The consultation will run until 18 August 2016.
CIPP comment HMRC will be engaging with stakeholders over the summer, including the CIPP, on the best way to implement these reforms. The Policy Team will consult with members and the wider profession in due course.
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Employment Intermediaries – are you reporting or running the risk of penalties? 4 August 2016 Following an introduction year delivered with a ‘light touch’ approach to penalties. HMRC will begin to apply penalties to Employment Intermediaries who fail to submit a report each quarter from the period ending 5 August 2016 where they have not operated PAYE on the workers payments. Penalties will begin from 6 August for Employment Intermediaries who fail to report information to HMRC of all workers they place with clients where the intermediary does not operate Pay As You Earn (PAYE) on the workers’ payments. The return is a report (or reports) that must be sent to HMRC at least once every 3 months – it is the intermediary that has the contract with the client that is responsible for sending the report (or reports).
The Chartered Institute of Payroll Professionals
Policy News Journal
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