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Advice Service provides information on investing and how to source a financial adviser (http://ow.ly/1RCn30rp8qF). ● Report any suspicions – Individuals suspicious of a firm, and believe they are operating a pension scam, should contact the FCA’s Consumer Helpline or use its reporting form (http://ow.ly/3Ezz30rp8tX). ● Be wary of future scams – Those who have already fallen victim to scams are more likely to be targeted again, either by the same fraudsters or by other criminals who have purchased the person’s details. ...employers can claim for 80% of employee wages for the remainder of the duration of the CJRS... Construction Industry Forum The policy team recently attended the inaugural meeting of the Construction Industry Forum, a stakeholder group recently established which includes members from the tax, accounting and construction industries. The CIPP will attend this forum to provide the payroll industry’s perspective, with particular focus on how the construction industry scheme offsets interact with real time information and pay as you earn (PAYE) functions. Student loan consultation group During the recent consultation group updates were given on the implementation of the Plan 4 student loan which will be in place from 6 April 2021. This plan will relate to those who took out a Scottish student loan while they were studying. Those who are on either Plan 1 or Plan 2 to whom this relates will, from 6 April 2021, be moved onto the new Plan 4. It has been confirmed that notification to move these employees will be sent at the same time as the usual SL1 student loan start notices in early March 2021. Employers will not get start and stop notices for affected employees but will be advised to ‘swap’ the current plan of an employee to Plan 4. Employers need to ensure that this change is actioned, as not doing so will mean the employee is overpaying their student loan. This does
not just relate to employees in Scotland, but across the whole of the UK. If the request to ‘swap’ is not actioned, via PAYE real time information, employers will be sent a notification from the generic notification service (GNS). The policy team advice is not to ignore any GNS message, and to action any notification sent, especially around student loans, to ensure that the deductions are correct to each employee’s circumstance. Further extension to the CJRS Ordinarily, when there is a major update to the workings of the coronavirus job retention scheme (CJRS), or indeed, any of the measures relating to support for businesses and individuals through the outbreak of coronavirus, an announcement is made in the Houses of Parliament. On Thursday 17 December 2020, however, the chancellor of the Exchequer tweeted about an additional month-long extension to the CJRS, thereby signifying the importance of social media and highlighting the many ways in which payroll professionals should keep up to date with important developments. What this means is that, as opposed to closing on 31 March 2021, the CJRS will now close on 30 April 2021. Initially, it was advised that the level of government support through the scheme would be 80% for November 2020– January 2021, and that there would be an assessment of the ongoing impact of the pandemic closer to the time in order to establish the amount provided by the government for February and March 2021. It is now confirmed that employers can claim for 80% of employee wages for the remainder of the duration of the CJRS, until the end of April 2021. The Budget date was also announced and will be delivered on 3 March 2021. By extending the length of the scheme by an additional month, this gives more than 45 days for employers to make business decisions following on from the announcements made in the Budget. In situations where businesses are required to make more than 100 redundancies, the consultation period must commence at least 45 days before any dismissals take effect, so the rationale behind timescales is apparent. At the time of writing, additional guidance on the extension to the scheme had not been published. n
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| Professional in Payroll, Pensions and Reward |
Issue 67 | February 2021
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