MY CIPP
On your behalf
Policy team update
The CIPP’s policy teamprovides information about recent meetings and developments
National minimumwage A new forum – which has been a long time coming, is one that sees the Department for Business, Energy and Industrial Strategy (BEIS) and HM Revenue & Customs (HMRC) work together with a small number of stakeholders from the Employment and Payroll Group to discuss the subject of national minimum wage and national living wage (‘NM/LW’). Since the inaugural meeting draft guidance for NM/LW has been shared with the forum members for comment, which bodes well for the future. Statutory Payments Consultation Group This long-standing forum brings BEIS, HMRC and the Department for Work and Pensions working together with stakeholders to discuss issues arising from the administration of statutory payments. A key subject of discussion at the January 2020 meeting of this biennial forum was that of parental bereavement leave (PBL) and statutory parental bereavement pay (SPBP). Employer guidance was intended to be published in December, but the general election prevented its release. However, by the time you read this it should have been published, alongside the publication of regulations that will bring the PBL and SPBP rules into effect. Another subject of discussion was that of the latest off-payroll working reforms. It was confirmed that a worker delivering their personal services through their personal service company (other intermediaries are available) and is deemed to be caught by the off-payroll working rules – and do have their tax and NICs liability affected – will not mean they have entitlement to employment rights. Such rights should be available to them through the intermediary that is being
sized organisations, explains what changes are coming in for contracts from 6 April 2020 and what recipients need to do in order to prepare. Namely, to start reviewing their current workforce and to open lines of communications with all internal stakeholders who will be impacted by an increased workload and with all external contractors whose contracts of work will need to be assessed. The method of assessment to be used is a key issue as the engaging client will need to demonstrate that they have taken reasonable care in reaching a decision. Although the CEST (check employment status for tax) tool, which HMRC launched in 2017, has been updated, controversy continues over the subject of MoO. The CEST tool is one resource that can be used, but engaging clients are free to use specialist IR35 services or other professional services if they prefer. Whatever service is used it is important is to be able to demonstrate that reasonable care has been taken. Though at the time of writing HMRC had not published full guidance, by the time you read this it should have been. As announced during the general election, a review of the roll-out of the latest reforms is being carried out. However, this is not, as many hoped, a review of IR35; and no delays are being hinted at by HM Treasury. Council tax pilot to recover debts direct fromworkers’ wages In July 2019 we told you through News Online about a pilot scheme affecting some local authorities in England that are using information sharing powers to recover unpaid council tax debt directly from earnings. Although we knew that this was a Cabinet Office pilot involving the sharing of
paid for their services. We hope that 2020 will finally provide government response to the 2018 consultation on employment status, and the impact on worker rights and taxation. A response is long overdue. ...start reviewing their current workforce and to open lines of communications... stakeholders from a range of sectors to meet with HMRC officials to discuss the operation and administration of IR35. Discussions and agenda items range from complex legal considerations that have dominated First and Second Tier tribunals for many years and will often focus on key subjects such as: mutuality of obligation (MoO), control and substitution. The current focus, however, is the delivery of the latest raft of off-payroll reforms which will see medium- and large-size entities, that were not previously captured within the public sector off-payroll reforms of 2017, having to assess whether a contractor who is delivering their personal services through an intermediary is captured by off-payroll working rules. The HMRC education programme, which began late summer 2019 with large businesses, stalled during general election purdah but has restarted with the delivery of webinars through HMRC’s Talking Points. Direct communications, in the form of a letter posted to medium- IR35 forum This long-standing forum enables
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| Professional in Payroll, Pensions and Reward | March 2020 | Issue 58
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