The Chartered Institute of Payroll Professionals
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In this response, the government has identified the need for the tax administration framework to be more transparent, provide greater clarity and to support digital reform. The additional steps that will be taken to ensure the concerns raised by stakeholders are addressed are discussed It is also confirmed here that the government currently has no plans to explore the changing of the tax year end date, citing that this would be a huge undertaking for businesses and government Timely Payment The government confirms it does not plan to chance the timings of tax payments for individuals, so self- assessment dates will remain the same. It will continue to explore how to bring the payment schedules closer to the periods they relate to HM Treasury has also released its 2021 review of the Office of Tax Simplification. This lays out some recommendations that will impact the way the office conducts reviews over the next five years. The CIPP will be diving further into some of these consultations and responses, so keep an eye out for further updates.
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Are payroll professionals tax advisers? 01 December 2021
One of the biggest things for payroll to come out of Tax Day on 30 November 2021 is confirmation that the government is not proceeding with introducing mandatory Professional Indemnity Insurance (PII) for tax advisers at this time. This follows on from a consultation seeking to address poor behaviour by a small number of tax advisers and raise standards in tax advice.
What does this have to do with payroll?
Tax advice is not defined in law. Payroll professionals, depending on their role, can deliver tax advice. This is particularly prevalent among outsourced payroll services where clients may look to their service provider for advice and recommendations, for example, in implementing salary sacrifice schemes. The CIPP responded to the consultation expressing concerns whether introducing PII would achieve the government objective – raising standards in tax advice. The CIPP concluded that many payroll professionals will not be engaged in providing tax advice, however acknowledged there is often a fine line between delivering advice and guidance. We encourage all payrollers to be mindful of this line. The government has confirmed that it expects to publish a new consultation document next year, which will “test a potential legislative definition of tax advice”. T he current response however does conclude that exclusions should be made for accountants and bookkeepers undertaking activities such as payroll. We’re pleased to see the government has taken a cautious step away from mandatory PII and we will be keeping a n eye out for the second consultation. While the response to this consultation acknowledges the need for exceptions, a legislative definition of tax advise could have huge ramifications on how payroll operates.
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Naming round 18 includes more than 200 employers 13 December 2021
On 8 December 2021 the Department for Business, Energy & Industrial Strategy (BEIS) and the Low Pay Commission (LPC) released the names of 208 businesses who have failed to pay the national minimum wage (NMW).
The employers listed were found to have collectively underpaid £1.2 million, in violation of NMW requirements, to around 12,000 workers. The companies named vary from sole traders all the way up to large high street names. These
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