Policy hub
arrangements (OpRA) legislation for cars ‘allows’ for a negative value for the car benefit in kind, but this was not included in the original Schema. This occurs in a very small number of situations (less than 200 in total) such as where an employee has made a capital contribution for a car and the car is held for a short period of time. In view of the very small number of cases affected by this error SDST decided not to revise the Schema. The negative figure should be suppressed in line with the Schema. SDST advised employers that to ensure the right tax outcome, they should either: l file the P11D return as normal with a zero figure (in line with the Schema) and submit an amendment to the P11D return noting the negative value (the amendment should be in writing), or l submit the P11D return on paper with the negative value. Whilst it is very unlikely that this would arise in a real time information submission, SDST said again that the negative figure should be suppressed in line with the Schema. Data item 41A (Taxable pay in this employment including payrolled benefits in kind – Year to date figure) should be
reported as the net figure (cash less any negative payrolled (BiKs); followed by “there is no reason for employers to contact HMRC in these cases”. ...CIPP continue to request at least an eighteen-month lead time from HMRC... Following SDST’s publication about the errors, several members contacted the Policy team with concerns about the legislative irregularity. The CIPP arranged a conference call between representatives of HMRC and the CIPP, summarised as follows: l HMRC confirmed that its guidance to return a negative P11D value in the particular circumstances involving capital contributions would stand and will apply for the 2017–18 and 2018–19 tax years. Where the company car benefit is being payrolled then the payrolled benefit will be a negative value resulting in the employee’s taxable pay being reduced.
l HMRC further confirmed that an affected employee’s tax code would be increased (as opposed to the decrease that usually results from a P11D submission) and that employers would be able to reduce the amount on which Class 1A National Insurance contributions are calculated by the negative P11D / payrolled value. l HMRC were pressed as to why tax year 2019–20 would be the earliest point at which a more satisfactory resolution of the problem could be reached. HMRC stated that primary legislation, not secondary legislation, was required to resolve the matter. This being a taxation issue, the necessary primary legislation is a Finance Bill/Act. This is yet another prime example of how important it is that consultation with stakeholders happens well in advance of an implementation date. And if primary legislative changes are required then this should be identified early in the consultation process. The CIPP continue to request at least an eighteen-month lead time from HMRC, primarily to ensure that payroll software developers can update their products in a timely manner. n
Your Institute needs you
CIPP board of directors - positions available
Board directors should possess the following: l Knowledge and understanding of the objectives and range of activities of the CIPP l Ability to think at a strategic level, understanding both the process of development and implementation of policy and the implications of strategic and policy decisions on the CIPP’s resources l Ability to understand budgets and the financial wellbeing of the CIPP l Analytical understanding and a logical approach to problem solving l Ability to see the external environment objectively l Ability to promote the CIPP internally and externally in a positive and constructive way l Leadership ability, influencing others and taking decisions as necessary l Understanding of a team member role, so as to listen/work constructively with others l Specific skills to enhance professionalism including presentation (technical and practical), oral communication (including summarising) and interpersonal skills
The role involves a commitment to attend four quarterly board meetings, plus occasional ad-hoc meetings (some of which will be by telephone or video conference), as well as representation at a number of Institute events and conferences. During a year the total commitment is expected to be around 8–12 days. All applicants will be required to submit a candidate statement of no more than 400 words which will be submitted to the appointments committee for review in accordance with the role specification. Candidates who meet the criteria outlined in the role specification will be voted for by the CIPP members at the Annual General Meeting. For details on what should be included within the candidate statement visit cipp.org.uk/agm . Being a member of the board of directors is a serious commitment; please only apply if you have the time to dedicate to the CIPP and payroll, pensions and reward professions. Office is held for a minimum of three years and a director may stand for re-election.
Board directors must be either a current associate, full, fellow or Chartered member of the CIPP.
Apply online at cipp.org.uk/agm or email info@cipp.org.uk for more information . The closing date for applications is 31 August 2018 and the appointments committee is meeting in September.
cipp.org.uk @CIPP_UK
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| Professional in Payroll, Pensions and Reward |
Issue 40 | May 2018
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