The Chartered Institute of Payroll Professionals
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This section discusses which elements of termination payments would attract tax and NI. This is anything which would be classed as earnings. There’s also coverage of what wouldn’t be subject to tax and NI, and which sections would only be tax-free. The guidance offers further information about what happens if an individual does not work their whole notice period. Reference is made to payments in lieu of notice (PILON) and post-employment notice pay (PENP), and some comprehensive examples are provided.
How tax and NI are deducted
This provides information on how tax and NI due on termination payments will be deducted, i.e., through the final payslip.
It also explains about the use of the 0T tax code for any payments made after somebody receives their P45.
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HMRC to remove CJRS claimants list month on month from 18 February 2022 18 February 2022
In February 2021, Her Majesty’s Revenue and Customs (HMRC) started to publish a monthly list of employers who had made Corona virus Job Retention Scheme (CJRS) claims. This was part of HMRC’s commitment to transparency.
The published list covered period from December 2020 up to September 2021 and provided employer names, Company registration Numbers and banded claim amounts.
The banded amounts are for the total amount claimed for each published month. The data does not include employers where the grant was paid back before the list was produced or where the claim was never paid. Employers could also apply to have their details withheld from reporting.
From 18 February 2022 HMRC will be removing the information that was shared more than 1 year ago, as described in the rules of the scheme.
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Adrian Chiles wins £1.7 million IR35 case 21 February 2022
The tax tribunal has sided with Adrian Chiles’ company, Basic Broadcasting Ltd, in a case brought by Her Majesty’s Revenue and Customs (HMRC) seeking over £1.7 million in tax and national insurance from 2021 to 2017.
Lorraine Kelly won a similar case, over a £1.2 million bill, while Sky Sports presenter Dave Clarke, lost his appeal and was given a bill worth around £281,000. Gary Lineker’s case, for £4.9 million, continues to be investigated.
Judge Cannan ruled that Chiles’ contracts were for services and not contracts of employment, therefore IR35 rules did not apply in these cases. It was noted that while there was a level of control, mutuality of obligation and no option for replacement, it was necessary to “stand back” and look at the situation as a whole. The judge also indicated that it did not appear that Chiles set out to avoid paying tax.
HMRC has stated they will now need to carefully look at “the outcome of the tribunal before considering next steps”. The judgment can be appealed, and if HMRC feel they still have a strong enough case we can expect this to happen.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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