Policy News Journal - 2016-17

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

The reporting periods are:

 6 April to 5 July, deadline 5 August  6 July to 5 October, deadline 5 November  6 October to 5 January, deadline 5 February  6 January to 5 April, 5 May

Penalties

If you report late penalties are automatically charged and the amount of the penalty will be based on the number of offences in a 12 month period.

The amounts are: 

£250 - first offence

 

£500 - second offence

£1,000 - third and later offences

If you submit a late report, but at least 12 months have passed since the last time you were late, it will be treated as a first offence.

If you submit a report that is incorrect, penalties may also apply. An incomplete report, for example a report where any information is missing, will count as an incorrect report. Penalties for incorrect reports will be determined on a case-by- case basis. Full details for employment intermediaries are available on GOV.UK if you are unsure as to whether you are caught by this reporting requirement you can contact the Employment Intermediaries Co-ordination Unit which is a small subject specialist team on 03000 555 995. Hours of operation are Monday to Friday, between 8:30am and 4:30pm.

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Off-payroll working in the public sector: reform of the intermediaries legislation 8 December 2016

Draft legislation and guidance have been published to account for the changes to the tax rules for off-payroll working in the public sector which come into force from 6 April 2017.

As announced at Autumn Statement 2016 and following consultation over the summer, the government will legislate in Finance Bill 2017 to reform the off-payroll rules (often known as IR35) in the public sector. This was first announced at Budget 2016.

Responsibility for operating the off-payroll working rules, and deducting any tax and NICs due, will move to the public sector body, agency or other third party paying an individual’s personal service company (PSC).

Geographical extent - The change will come into effect from 6 April 2017 and apply to all four nations of the UK.

As a result of feedback received during consultation, the 5% tax-free allowance for general business expenses, available to workers currently applying the rules, will be withdrawn for PSCs working in the public sector. This will simplify administration and reflects the fact that PSCs no longer have responsibility for applying the rules. Public sector bodies will be responsible for determining whether or not the rules apply and will be required to share this information with agencies in order for them to operate the rules correctly. To address concerns about acting in good faith on incorrect or false information, transfer of liability provisions will be introduced to provide protection. Public sector bodies in scope are those subject to the provisions of the Freedom of Information Act 2000 and the Freedom of Information (Scotland) Act 2002. The rules remain unchanged for the private sector.

Draft legislation (provision 1), a technical note/guidance , the summary of responses to the consultation and a TIIN have all been published.

The consultation on the draft legislation will run to 1 February 2017. Written responses should be sent to off- payroll.consultation@hmrc.gsi.gov.uk .

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The Chartered Institute of Payroll Professionals

Policy News Journal

cipp.org.uk

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