Policy hub
HMRC data, detailed information has been scarce and there has been much industry speculation about the project and the implications it will have for payroll and payroll software providers. Since our initial reports, representatives from the CIPP and the ICAEW (Institute of Chartered Accountants in England and Wales) were invited to discuss this pilot with Cabinet Office representatives. We are now able to share details about the project. The Digital Economy Act 2017 allows permissive data sharing between specified public authorities for the purpose of managing and reducing debt. Currently councils can only use data supplied by the resident to recover their debts. In this pilot, 29 councils are able to obtain HMRC employer and self-assessment data for a sample of residents who have not paid their council tax. The pilot only affects people who have not paid their council tax for 2018/19 or earlier years and the council has obtained a liability order from the Magistrates Court. Each council in the pilot will supply HMRC with a title, forename, initial or middle name, surname, debt address or contact address for around 4,000 debtors to obtain employment
...data for a sample of residents who have not paid their council tax payment against employed debtors. Whilst it is likely that there will be an increase in the number of CTAEOs issued in pilot areas, this is the only change that payroll practitioners are expected to face. There are no new fields required for real time information submissions and this pilot does not involve the creation of a new type of AEO. and self-assessment information. HMRC will use the council-supplied information and compare details against their internal records. Where there is an exact match with the first name and surname and either debt or contact address, HMRC will provide requested details to the council. Where data is matched, the council will contact the individuals concerned to decide how best to recover the debt. It may be that the council decides to raise a council tax attachment of earnings order (CTAEO) in order to enforce
The pilot will run for one year, after which it will be evaluated and a report produced for the Review Board and Minister for the Constitution. Factors determining whether the pilot is a success could include: ● amount of council tax debt recovered in an affordable and sustainable way ● increase in the number of vulnerable customers identified ● a reduction in the use of enforcement agents. If the pilot is successful, a national solution for all England and Welsh councils may be developed. The CIPP policy team remain keen to understand whether payroll practitioners in the pilot areas experience an increase in the number of CTAEOs received and, if so, whether they experience any additional administrative burden. We will be liaising with the Cabinet Office to ensure this area is explored. n If you have any comments or experiences you would like to share on any of the subjects raised please get in touch by email to policy@cipp.org.uk .
OFF-PAYROLL WORKING (IR35) Medium and large organisations in all sectors of the economy will become responsible for assessing the employment status of individuals who work for them. Make sure you are compliant with the legislation with our off-payroll working (IR35) webinar and off-payroll working and other employment status considerations training course.
Visit cipp.org.uk/training , email enquiries@cipp.org.uk or call 0121 712 1000 for more information.
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Issue 58| March 2020
| Professional in Payroll, Pensions and Reward |
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