Policy News Journal - 2016-17

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

Relevant statutory provision

Subject of provision

Old Limit

New Limit

Section 124(1ZA)(a) of the 1996 Act( 4 )


Limit on amount in respect of any one week payable to an employee in respect of a debt to which Part 12 of the 1996 Act applies and which is referable to a period of time.



Paragraphs (a) and (b) of section 186(1) of the 1996 Act


Maximum amount of “a week’s pay” for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal.



Section 227(1) of the 1996 Act( 5 )

Geographical extent – This order applies to England Scotland and Wales.

The Employment Rights (Increase of Limits) Order (Northern Ireland) usually comes into effect in February but has not yet been published.

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Employment Status Service now live 3 March 2017

The new Employment Status Service enables you to check employment status for tax purposes and has replaced the Employment Status Indicator.

With the reform to off-payroll working in the public sector coming into effect in April 2017, HMRC has produced the new ‘ Check employment status for tax ’ tool.

This is to be used to find out if you, or a worker on a specific engagement, should be classed as employed or self-employed for tax purposes.

This service will give you the view of HMRC on whether:

 the intermediaries legislation (known as IR35) applies to an engagement  a worker should pay tax through PAYE for an engagement.

HMRC will stand by the result given unless a compliance check finds the information provided isn’t accurate.

This service can be used for current or future engagements in the private or public sector. You should reassess the status of the role if there are changes to the engagement or the way the work is done.

This service is anonymous and won’t store any information you enter or the result given. You’ll be able to print your result for your own records.

Follow this link for full details and access to the Check employment status for tax tool.

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