The Chartered Institute of Payroll Professionals
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UK suspends the exchange of tax information with Russia 21 March 2022
In a statement made by Lucy Frazer, financial secretary to the Treasury, on 17 March 2022, it was announced that Russia and Belarus would be frozen out of UK tax cooperation. Previously the UK would exchange tax information under the Convention on Mutual Administrative Assistance in Tax Matters with Russia and Belarus under bilateral Double Tax Agreements. This is done to address tax compliance concerns and areas for risk.
The following agreements have been suspended for Russia:
Exchange of Information on Request (EoIR) Common Reporting Standard (CRS) Country-by-country Reporting (CBCR)
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Belarus does not partake in the CRS or CBCR, therefore only the EoIR has been suspended.
This forms part of the wider UK response to the Russian invasion of Ukraine. With these restrictions stopping the supply of information that could result in increased tax benefit for Russia or Belarus.
This is not expected to impact the UK’s ability to address non -compliance.
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Inflation increases to 6.2% 23 March 2022
The Office for National Statistics (ONS) has confirmed that the consumer prices index (CPI) has risen by 6.2% in the 12 months to February 2022. This is an increase on the previous 5.5% recorded up to January 2022.
It’s been confirmed that t his is the highest 12-month CPI inflation rate in the National Statistic series, which commenced in January 1997.
The CPI looks at how much things cost now, as opposed to this time last year. It will impact the cost of food and services, which will directly affect family budgets.
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The government’s 2022 remit to the Low Pay Commission released 23 March 2022
On 22 March 2022, the Department for Business, Energy and Industrial Strategy (BEIS) released the 2022 Remit for the Low Pay Commission (LPC). The LPC are responsible for making recommendations on the National Minimum Wage (NMW) and National Living Wage (NLW) rates. The 2022 remit outlines what the UK government would like the LPC to explore for the 2023/24 tax year. The recommendations provided last year by the LPC were accepted by the government in full, resulting in a 6.6% increase in the NLW rate to £9.50, applying to all workers 23 and over. The 2022 remit indicates that the government remains committed to the 2024 target that a NLW, at two thirds of median income, will apply to all workers aged 21 and over.
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