The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
CIPP poll on off-payroll working in the public sector 11 April 2016
From April 2017 responsibility for deciding whether intermediaries legislation will apply, will move from Personal Service Companies (PSCs) to Public sector employers and their agencies/third parties. The latest CIPP poll asks how this will impact you. The Government announced at Budget 2016 that from April 2017, individuals working through their own company in the public sector will no longer be responsible for deciding whether the intermediaries legislation will apply. This responsibility will instead move to the public sector employer, agency, or third party that pays the worker’s intermediary. In the event that the employer, agency or third party decides that the rules apply to a contract they will be required to account for and pay the liabilities through the Real Time Information (RTI) system and deduct the relevant tax and NICs. Further to this announcement a technical note was published which provides further details on the changes that are being proposed. The note gives not only an overview of the changes but also further technical details and the next steps. It is the intention of HMRC to provide help for public sector employers and agencies with their new responsibilities by introducing clear, objective tests for employers to use to decide at the point of hire whether or not they will need to consider the new rules and to clearly identify engagements that are caught by the rules. For cases that are less clear cut, HMRC aim to develop a digital tool to provide employers who are engaging an incorporated worker with a real-time HMRC view on whether or not the intermediaries rules need to be applied.
HMRC will be designing these new tools and tests in consultation with stakeholders. Legislation will be introduced in Finance Bill 2017 and will also be subject to full consultation.
Please take a moment to complete our CIPP Poll on our home page (bottom right) which asks:
From April 2017 responsibility for deciding whether intermediaries legislation will apply, will move from PSC to Public sector employers and their agencies/third parties. How will this impact you?
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CIPP quick poll on Gender Pay Gap reporting 11 May 2016
Regulations are due to come into force in October 2016 which will require private and voluntary sector employers in England, Scotland and Wales with at least 250 employees, to submit gender pay gap reports annually.
To help us understand awareness and readiness, please take a moment to complete our CIPP Poll on our home page (bottom right) which asks:
“If gender pay gap reporting applies to you (250+ employees) will you be ready for reporting requirements from October 2016?”
Draft regulations were published for consultation in February 2016. Responses are currently being analysed by the Government Equalities Office (GEO).
Commencement and scope Subject to the approval of Parliament, the regulations will come into force on the earliest relevant common commencement date (1 October 2016), although employers will not be expected to publish the required information immediately. Employers with 250 or more relevant employees will fall within scope of the regulations. A relevant employee means someone who ordinarily works in Great Britain and whose contract is governed by UK legislation.
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