Policy News Journal - 2011-2012

Policy News Journal

2011-12

Produced by the CIPP policy and research team

Introduction

This Policy News Journal has been produced by the CIPP Policy and Research team for the exclusive benefit of members. The Journal contains all relevant payroll News On Line items and is indexed and categorised for easy reference. Each item is in date order (the most recent entry being at the bottom) to ensure you know you have the latest updates on any given subject. The Journal will be produced on an annual basis running from 6 April to encompass a full tax year. It will be updated on a weekly basis and published within the News On Line weekly email alert at least every two weeks. Using the index is easy – find your topic of interest and CTRL + click will take you straight there. Any comments, suggestions or questions, please email policy@cipp.org.uk

CIPP Policy News Journal

09/10/2012, Page 2 of 234

Index Attachment of Earnings .................................................................................... 14 CIPP SURVEY: PROPOSALS TO CHANGE THE WAY ATTACHMENT OF EARNINGS ORDERS ARE CALCULATED.......................................................................................... 14 CIPP SURVEY RESPONSE: PROPOSALS TO CHANGE THE WAY ATTACHMENT OF EARNINGS ORDERS ARE CALCULATED ................................................................ 14 ATTACHMENT ORDERS: NEW LINK TO A GUIDE FOR EMPLOYERS ......................... 14 Deduction of Earnings Orders.......................................................................... 15 Child Maintenance Enforcement Commission (CMEC) ........................................15 STANDARDISED DEO SCHEDULE REPORT ................................................................. 15 CMEC UPDATE ............................................................................................................... 15 STANDARDISED DEO SCHEDULE REPORT ................................................................. 16 FAQ UPDATE................................................................................................................... 16 TRANSFER OF FUNCTIONS OF CMEC.......................................................................... 16 CHILD MAINTENANCE ENFORCEMENT COMMISSION CONSULTATION ................... 16 CIPP RESPONSE TO CMEC CONSULTATION............................................................... 17 Better Regulation............................................................................................... 17 TREASURY LAUNCHES REVIEW OF RED TAPE IN THE TAX SYSTEM....................... 17 CONSULTATION ON THE REMOVAL OF 36 TAX RELIEFS........................................... 17 SIMPLER REPORTING FOR THE SMALLEST BUSINESSES: DISCUSSION PAPER.... 18 RECOMMENDATIONS TO SIMPLIFY UK TAX SYSTEM FOR SMALL BUSINESSES.... 19 SIMPLER INCOME TAX FOR THE SIMPLEST SMALL BUSINESSES............................ 20 Red Tape Challenge.................................................................................................20 RED TAPE CHALLENGE SETS RETAILERS FREE FROM REGULATIONS .................. 20 EMPLOYMENT RELATED LAW....................................................................................... 20 Citizen News....................................................................................................... 21 Migrant Workers.......................................................................................................21 PROPOSALS SET OUT FOR BREAKING THE LINK BETWEEN TEMPORARY AND PERMANENT MIGRATION .............................................................................................. 21 CONFIRMATION OF EDUCATIONAL OVERSIGHT ARRANGEMENT FOR TIER 4 SPONSORS ..................................................................................................................... 22 HIGHLY TRUSTED SPONSORSHIP FOR TIER 4 SPONSORS ...................................... 22 GUIDANCE PUBLISHED IN NEW FORMAT FOR TIER 4 SPONSORS........................... 22 REDUCTION IN JOBS AVAILABLE TO MIGRANTS ........................................................ 23 STANDARDS RAISED FOR THE STUDENT VISA SYSTEM........................................... 24 FOREIGN NATIONALS RIGHT TO WORK IN THE UK ONLINE CHECKS FOR EMPLOYERS ................................................................................................................... 24 NEW STUDENT RULES TO WELCOME THE BRIGHTEST AND BEST.......................... 25 DETAILS OF THOSE WHO EMPLOY ILLEGAL WORKERS WILL NOW BE PUBLISHED ..................................................................................................................... 25 CHANGES TO THE IMMIGRATION RULES .................................................................... 25 Non-domiciles ..........................................................................................................27 REFORM OF THE TAXATION OF NON-DOMICILED INDIVIDUALS............................... 27 Tax residence ...........................................................................................................28 STATUTORY DEFINITION OF TAX RESIDENCE............................................................ 28 Construction Industry ....................................................................................... 28 DOS AND DON’TS FOR P35 COMPLETION FOR CONSTRUCTION INDUSTRY SCHEME .......................................................................................................................... 28 NEW LATE FILING PENALTIES FOR CIS RETURNS FROM 6 OCTOBER 2011............ 28 NEW FILING PERIODS FOR CONSTRUCTION INDUSTRY SCHEME ........................... 28 CONSUTRUCTION INDUSTRY HOLIDAY SCHEME....................................................... 29 Employment Tribunals ...................................................................................... 29 PREGNANCY, POSITIVE DISCRIMINATION & POLKEY................................................ 29 NOTICE OF DISMISSAL .................................................................................................. 30 EMPLOYMENT STATUS UNDER DISABILITY DISCRIMINATION ACT 1995 ................. 30 IMPLIED TERMS.............................................................................................................. 31 NEGLIGENT (NON-) REFERENCES ............................................................................... 31

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09/10/2012, Page 3 of 234

SICKNESS AND ACCRUED ANNUAL LEAVE................................................................. 32 EQUAL PAY TRIBUNAL................................................................................................... 32 EMPLOYER’S RETIREMENT NOTICES MAY BE INVALID............................................. 33 TAX TREATMENT OF EMPLOYEE’S LEGAL FEES ON TERMINATION ........................ 33 CIPP Policy request clarity from HMRC ........................................................................ 34 ACCIDENTAL TEST SUBMISSION OF P35 NOT A REASONABLE EXCUSE................. 35 COST CAN JUSTIFY DISCRIMINATION.......................................................................... 36 NON-PAYMENT OF WAGES WHEN EMPLOYEE IN REMAND ...................................... 36 TUPE AND COLLECTIVE BARGAINING ......................................................................... 37 TUPE LOOPHOLE LANDS EMPLOYERS WITH UNEXPECTED OBLIGATIONS............ 39 DISMISSAL FOR REFUSING PAY CUT .......................................................................... 39 DUTY TO CONSIDER REQUEST TO WORK BEYOND RETIREMENT .......................... 39 CONSTRUCTIVE DISMISSAL.......................................................................................... 40 PAYMENT FOR OVERTIME ............................................................................................ 41 COMPULSORY RETIREMENT AGE................................................................................ 41 TUPE SERVICE PROVISION CHANGEOVERS .............................................................. 42 SICKNESS AND ACCRUED ANNUAL LEAVE................................................................. 42 TRIBUNAL CRITICISES HMRC FOR DELAY IN ISSUING PENALTIES .......................... 43 EMPLOYMENT STATUS.................................................................................................. 43 PAID HOLIDAY FOR SICK WORKERS............................................................................ 44 LANDMARK EQUAL PAY RULING FOR LONDON NURSE............................................. 44 SUMMARY DISMISSAL TRUMPS NOTICE PERIOD....................................................... 45 GROSS MISCONDUCT AND BONUS.............................................................................. 45 CONTINUITY OF EMPLOYMENT IN THE NHS ............................................................... 46 NMW AND SLEEPING ON THE JOB ............................................................................... 46 ANNUAL EMPLOYMENT TRIBUNAL STATISTICS ......................................................... 47 FIRST WORKER CHARGED UNDER THE BRIBERY ACT ............................................. 47 REST BREAKS ................................................................................................................ 48 PILOT’S HOLIDAY PAY NOT LIMITED TO BASIC SALARY............................................ 48 JOB REFERENCES ......................................................................................................... 49 DISMISSAL: WORK RELATED COMMENTS ON FACEBOOK........................................ 49 MENTIONING UNPROVEN ALLEGATIONS IN A REFERENCE NOT UNFAIR ............... 50 DISABILITY DISCRIMINATION: REASONABLE ADJUSTMENTS ................................... 51 TUPE AND VARIATION OF CONTRACT......................................................................... 51 DISMISSAL CANNOT BE RETRACTED – NORMALLY................................................... 52 NHS TERMS AND CONDITIONS OF SERVICE............................................................... 52 MITIGATION OF LOSS .................................................................................................... 53 RE-ENGAGEMENT AND ALTERNATIVE VACANCIES ................................................... 54 ILLEGAL AND IMMIGRATION RESTRICTIONS .............................................................. 54 HOLIDAY PAY AND SICK ABSENCE .............................................................................. 55 CJEU RULES ON RIGHT TO CARRY OVER HOLIDAY ACCRUED WHILST ON LONG TERM SICK LEAVE.......................................................................................................... 55 PART-TIME PENSION CLAIMS ....................................................................................... 56 STRINGFELLOWS - ARE DANCERS EMPLOYEES?...................................................... 56 MARITAL DISCRIMINATION............................................................................................ 57 PENSION SWITCH RULED LAWFUL BY HIGH COURT ................................................. 57 WORKING TIME AND ANNUAL LEAVE .......................................................................... 58 LIVE IN HOUSEKEEPERS AND NATIONAL MINIMUM WAGE ....................................... 58 HR MANAGER’S USE OF LINKEDIN RESULTS IN CONSTRUCTIVE DISMISSAL CASE................................................................................................................................ 59 COURT APPEAL REAFFIRMS LONG ESTABLISHED POWER FOR THE TAXMAN...... 59 ALMOST £1 MILLION AWARED FOR RACIAL DISCRIMINATION .................................. 60 IS IT JUSTIFIABLE TO RETIRE OLDER EMPLOYEES TO MAKE WAY FOR YOUNG TALENT?.......................................................................................................................... 61 DETRIMENT AND CAUSATION....................................................................................... 61 REDUNDANCY AND SUITABLE ALTERNATIVE EMPLOYMENT ................................... 62 RECRUITMENT AGENCY LOSES TRIBUNAL OVER SALARY SACRIFICE SCHEME... 62 EMPLOYMENT STATUS.................................................................................................. 63 RESTRICTIVE COVENTANTS......................................................................................... 64

CIPP Policy News Journal

09/10/2012, Page 4 of 234

SHARES IN CASH BOX COMPANIES SHOULD BE SUBJECT TO INCOME TAX.......... 64 POST EMPLOYMENT VICTIMISATION........................................................................... 65 EMPLOYEE WORKING ABROAD COULD BRING UNFAIR DISMISSAL CLAIM............. 66 EMPLOYMENT RIGHTS WHEN CONTRACT ILLEGAL................................................... 66 ARE EMPLOYMENT JUDGES ‘WORKERS’? .................................................................. 67 REDUNDANCY AND SUITABLE ALTERNATIVE EMPLOYMENT ................................... 67 REDUNDANCY AND POOL OF ONE............................................................................... 68 EMPLOYEES NOT ENTITLED TO PAYMENT FOR OVERTIME ..................................... 68 TUPE AND SUBSTANTIAL CHANGE IN WORKING CONDITIONS ................................ 69 YET ANOTHER CASE OF LONG TERM SICK EMPLOYEES AND ANNUAL LEAVE...... 69 MARITAL DISCRIMINATION............................................................................................ 70 Expenses and Benefits ..................................................................................... 70 Advisory Fuel Rates.................................................................................................70 CHANGE TO CALCULATION AND ASSESSMENT OF ADVISORY FUEL RATES ......... 70 HMRC PUBLISHES REVISED ADVISORY FUEL RATES ............................................... 71 ADVISORY FUEL RATES – 1 SEPTEMBER 2011........................................................... 71 ADVISORY FUEL RATES – 1 DECEMBER 2011............................................................. 72 ADVISORY FUEL RATES – 1 MARCH 2012.................................................................... 72 AMAPs ......................................................................................................................73 APPROVED MILEAGE ALLOWANCE PAYMENTS (RATES) STATUTORY INSTRUMENT .................................................................................................................. 73 Company Vehicles ...................................................................................................73 CAR FUEL BENEFIT STATUTORY INSTRUMENT ......................................................... 73 RURAL FUEL DUTY RELIEF FOR SCOTTISH ISLANDS AND SCILLY ISLES ............... 73 WITHDRAWAL OF EXTRA STATUTORY CONCESSION ON COMPANY CARS FOR DISABLED DRIVERS WITHOUT BLUE BADGES............................................................ 73 Employer Supported Childcare...............................................................................74 CODE OF PRACTICE PUBLISHED BY CHILDCARE VOUCHER PROVIDERS ASSOCIATION ................................................................................................................. 74 FURTHER GUIDANCE FOR EMPLOYER SUPPORTED CHILDCARE ........................... 74 EMPLOYER SUPPORTED CHILDCARE GUIDANCE...................................................... 75 NEW CHILDCARE VOUCHER SCHEME IMPACT ASSESSMENT SURVEY .................. 75 E18 UPDATED WITH EMPLOYER SUPPORTED CHILDCARE CHANGES.................... 75 CIPP POLICY SURVEY: NEW CHILDCARE VOUCHERS IMPACT ASSESSMENT FOLLOW UP .................................................................................................................... 75 CHILDCARE VOUCHER IMPACT SURVEY RESULTS ................................................... 76 Expense and Benefits - General .............................................................................76 TAX RELIEF FOR LATE NIGHT TAXIS WILL BE RETAINED.......................................... 76 EMPLOYMENT INCOME – DEFINITION OF MOBLIE PHONE (TREATMENT OF SMARTPHONES)............................................................................................................. 77 REIMBURSING ADDITIONAL HOUSEHOLD EXPENSES FOR HOME WORKERS........ 77 HMRC CONFIRM MONTHLY GUIDELINE RATE TO BE USED FOR HOME WORKERS....................................................................................................................... 77 Payrolling..................................................................................................................78 IMPORTANT INFORMATION FOR PAYROLLED EXPENSES AND BENEFITS.............. 78 ADDITIONAL PRACTICAL GUIDANCE FOR PAYROLLING............................................ 78 HMRC WILL ACCEPT PAYROLLED BENEFIT DETAILS ON A CD................................. 79 HMRC WILL NO LONGER ACCEPT PAYROLLED BENEFIT DETAILS ON A CD........... 79 Professional Fees ....................................................................................................79 PROFESSIONAL FEES AND SUBSCRIPTIONS LIST UPDATED ................................... 79 P11D..........................................................................................................................80 P11D PROCESSING UPDATE FROM HMRC.................................................................. 80 SIGNATURES ON FORMS P11D(b) ................................................................................ 81 WITHDRAWAL OF EXTRA STATUTORY CONCESSION FILING EXTENSION FOR FORM P11D(b)................................................................................................................. 81 Salary Sacrifice ........................................................................................................82 CHANGES TO THE TREATMENT OF CERTAIN SUPPLIES MADE BY EMPLOYERS UNDER SALARY SACRIFICE ARRANGEMENTS ........................................................... 82

CIPP Policy News Journal

09/10/2012, Page 5 of 234

GUIDANCE ON CYCLE TO WORK AND VAT PAYMENTS ............................................. 82 HMRC General.................................................................................................... 83 HMRC SCANNING INCOMING MAIL............................................................................... 83 Scanning incoming compliance mail moves forward ..................................................... 83 HMRC ENQUIRY CENTRES............................................................................................ 84 HMRC TARGETING TAX CHEATS IN THE E-MARKETPLACE....................................... 84 HM TREASURY COMMITTEE FINDS SERIOUS DISSATISFACTION WITH HMRC....... 84 HMRC NEW ENHANCED RECOGNITION SCHEME....................................................... 85 CIPP Policy survey ....................................................................................................... 85 Update for software developers .................................................................................... 86 HMRC DRAFT GUIDANCE ON LITIGATION AND DISPUTE RESOLUTION................... 86 CLOSURE OF OLD URLS FOR THE LIVE DPS .............................................................. 86 OFFICIAL TAX GAP NATIONAL STATISTICS ................................................................. 87 TAXMAN URGES EMPLOYERS TO DITCH ‘A N OTHER’............................................... 87 HMRC TACKLES SCRAP METAL TAX DODGERS ......................................................... 88 HMRC CONSULTATION ON PERSONAL TAX................................................................ 88 TEMPORARY SUSPENSION OF 2011-12 PAYE PAYMENT BOOKLETS....................... 88 HMRC TARGETS EMPLOYER DATA QUALITY.............................................................. 89 HMRC GUIDELINES FOR IMPROVING YOUR PAYROLL DATA.................................... 89 HMRC ACCEPT FASTER PAYMENTS ............................................................................ 90 HMRC ANNOUNCES NEW FACITLITY TO TACKLE SERIOUS TAX FRAUD................. 90 TALKING TO HMRC ABOUT EMPLOYEES’ TAX CODES............................................... 91 THIRTY NEW TASKFORCES TO TACKLE TAX EVASION ............................................. 92 HMRC ONLINE SEMINARS FOR BUSINESS.................................................................. 92 HMRC CLARIFICATION REGARDING DUAL CONTRACTS ........................................... 93 CONSULTATION ON PROPOSALS TO CHANGE INCOME TAX RULES ON INTEREST........................................................................................................................ 93 Digital by Default......................................................................................................94 DIGITAL BY DEFAULT CONSULTATION ........................................................................ 94 DIGITAL BY DEFAULT CIPP POLICY SURVEY .............................................................. 94 DIGITAL BY DEFAULT CIPP CONSULTATION RESPONSE .......................................... 95 DIGITAL BY DEFAULT CONSULTATION RESPONSE.................................................... 95 Employment Consultation Forum...........................................................................96 MINUTES PUBLISHED FROM THE JULY EMPLOYMENT CONSULTATION FORUM ... 96 Tax Agents and Advisers ........................................................................................96 CONSULTATION PUBLISHED PROPOSING TRANSFORMATION ON THE RELATIONSHIP BETWEEN HMRC AND TAX AGENTS.................................................. 96 TAX AGENTS AND ADVISERS COPIES OF SOME FORMS RETAINED........................ 97 JOINT TAX AGENT STRATEGY STEERING GROUP ..................................................... 97 OTS SURVEY TAX AGENT COMMUNITY....................................................................... 97 UPDATE ON SA252 LETTERS ........................................................................................ 97 JOINT TAX AGENT STRATEGY STEERING GROUP ..................................................... 98 National Insurance............................................................................................. 98 EMPLOYER NICS HOLIDAY UPDATE ............................................................................ 98 Update from HMRC ...................................................................................................... 98 REPLACEMENT NATIONAL INSURANCE CARDS ......................................................... 99 National Minimum Wage (NMW)....................................................................... 99 NEW NMW RATES APPROVED FROM OCTOBER 2011 ............................................... 99 CIPP POLICY SURVEY: CONSULTATION ON THE NMW............................................ 100 EMPLOYERS AND INTERNS GET CLARITY ON NMW ................................................ 100 TUC CALLING HIGHER THAN INFLATION RISE TO NMW IN 2012 ............................. 100 NEW NMW RATES APPROVED FROM OCTOBER 2012 ............................................. 101 Paye As You Earn ............................................................................................ 101 Summary of PAYE regulations that came into effect 6 April 2011.....................101 Summary of Budget 2012 ......................................................................................102 Cap on unlimited tax reliefs............................................................................................. 104 PAYE Penalties .............................................................................................................. 104 Child Benefit income tax charge ..................................................................................... 104

CIPP Policy News Journal

09/10/2012, Page 6 of 234

Car and van fuel benefit charge 2012-13 & 2013-14....................................................... 104 Company Car Tax Rates 2014-15 to 2016-17................................................................. 105 Corporation Tax Rates.................................................................................................... 105 Automatic Review of State Pension Age (SPA) .............................................................. 105 Single Tier Pension......................................................................................................... 106 VAT: revalorisation of registration and deregistration thresholds..................................... 106 Tax simplification for small businesses ........................................................................... 106 Tax Transparency........................................................................................................... 106 Integration of income tax and National Insurance contributions ...................................... 107 Tax Avoidance................................................................................................................ 107 Employer asset-backed pension contributions ................................................................ 107 Qualifying Recognised Overseas Pensions Schemes (QROPS)..................................... 107 Payments after P45 issued and Share Schemes Payments...............................108 PENSIONER TAXATION AND SHARE SCHEMES TO BE REVIEWED ........................ 108 UPDATE ON TAX CODE APPLIED TO PAYMENTS AFTER P45 ISSUED.................... 108 REVIEW OF THE APPROVED EMPLOYEE SHARE SCHEME PLANS......................... 108 OTS PUBLISHES REPORTS ON PENSIONER TAXATION AND EMPLOYEE SHARE SCHEMES...................................................................................................................... 109 SHARE SCHEMES SIMPLIFICATION RECCOMMENDATIONS PUT FORWARD ........ 109 EMPLOYEE SHARE SCHEME RELATED PAYMENTS FOR LEAVERS ....................... 111 PAYE REGULATIONS 2011 AMENDMENTS TO EMPLOYEE SHARE SCHEMES....... 111 SHARE SCHEMES AND THE OPERATION OF CODE 0T ............................................ 111 TAX TREATMENT OF SHARE BASED EARNING AFTER CESSATION OF EMPLOYMENT .............................................................................................................. 112 PAYE CODE APPLIED TO CERTAIN SHARE BASED PAYMENTS .............................. 112 TAX CODE LEGISLATION CHANGE FOR SHARED BASED EARNINGS Q & A .......... 113 Collecting debts through PAYE ............................................................................113 CONSULTATION ON DRAFT SECONDARY LEGISLATION ......................................... 113 SUMMARY OF RESPONSES TO CONSULATION ON DRAFT SECONDARY LEGISLATION ................................................................................................................ 113 HMRC UPDATE ............................................................................................................. 114 Employer Annual Return .......................................................................................114 UPDATED GUIDANCE ON CORRELATION ID.............................................................. 114 Integration of tax and NICs ...................................................................................115 CALL FOR EVIDENCE: INTEGRATING THE OPERATION OF INCOME TAX AND NATIONAL INSURANCE CONTRIBUTIONS.................................................................. 115 CIPP POLICY SURVEY: INTEGRATION OF TAX AND NICs......................................... 117 CIPP Call for evidence response ................................................................................ 117 INTEGRATING THE OPERATION OF TAX AND NICS: NEXT STEPS.......................... 117 SELF EMPLOYED NATIONAL INSURANCE CONTRIBUTIONS – VIEWS SOUGHT .... 118 PAYE General .........................................................................................................119 PAYING PARISH CLERKS............................................................................................. 119 Appeals from parish councils against 2010-11 P35 penalty notices ............................ 119 GOOD FRIDAY 2012 FALLS ON 6 APRIL...................................................................... 120 PAYE POOLING DISCUSSION DOCUMENT PUBLISHED ........................................... 120 MODERNISING THE ADMINISTRATION OF THE PERSONAL TAX SYSTEM ............. 120 P38(S) WILL NO LONGER BE AVAILABLE FOR USE FROM APRIL 2013 ................... 121 HMRC ISSUE STATEMENT OVER ACCRUED LATE FILING FINES FOR P35 ............ 121 Rates and Thresholds............................................................................................122 INCOME TAX RATES AND THRESHOLDS FOR 2012-13............................................. 123 2012 STATUTORY PAYMENT RATES AND THRESHOLDS......................................... 124 DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (LIMITS AND THRESHOLDS) (AMENDMENT) REGULATIONS 2012 ........................................................................... 125 Real Time Information ...........................................................................................125 DRAFT RTI PACK FOR SOFTWARE DEVELOPERS .................................................... 125 RTI SPECIFICATION ..................................................................................................... 126 TECHNICAL INFORMATION FOR SOFTWARE DEVELOPERS ................................... 126 RTI FOR EMPLOYERS .................................................................................................. 127 RTI SPECIALIST INTEREST GROUP............................................................................ 127

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RTI CUSTOMER USER GROUP.................................................................................... 127 HMRC RTI CUSTOMER USER GROUP MINUTES ....................................................... 127 RTI MEMBER FAQs ....................................................................................................... 128 RTI CROSS-REFERENCE HASH .................................................................................. 128 RTI SOFTWARE DEVELOPER FORUMS...................................................................... 128 CIPP / BDO RTI SURVEY .............................................................................................. 128 CUSTOMER JOURNEYS AND BUSINESS SCENARIOS.............................................. 128 RTI FAQS FOR SOFTWARE DEVELOPERS................................................................. 129 HMRC RESEARCH FOR THE RTI PROJECT ............................................................... 129 REAL TIME INFORMATION CUSTOMER USER GROUP ............................................. 129 THIRD PARTY VALIDATION SERVICE ......................................................................... 129 REAL TIME INFORMATION UPDATE FOR SOFTWARE DEVELOPERS ..................... 130 REAL TIME INFORMATION CUSTOMER USER GROUP ............................................. 131 THIRD PARTY VALIDATION SERVICE FOR DPS......................................................... 131 REAL TIME INFORMATION EDI MESSAGE IMPLEMENTATION GUIDELINES ........... 131 EMPLOYEE DATA MUST BE CORRECT FOR REAL TIME INFORMATION................. 131 UNIVERSAL CREDIT PROGRAMME ON TRACK FOR OCTOBER 2013...................... 132 HMRC Update on RTI..................................................................................................... 133 REAL TIME INFORMATION LEGISLATIVE CHANGES PUBLISHED FOR COMMENT 134 SOFTWARE DEVELOPERS: RTI INTERNET TECHNICAL PACK UPDATED............... 134 RTI PILOT TO BE EXTENDED TO 1300 EMPLOYERS ................................................. 135 PROPOSAL TO ABOLISH P45/P46 FORMS ................................................................. 136 REAL TIME INFORMATION UPDATE FOR SOFTWARE DEVELOPERS ..................... 136 SOFTWARE DEVELOPERS: EDI RTI NINO VERIFICATION ........................................ 136 STILL TIME TO JOIN RTI PILOT.................................................................................... 137 HMRC WITHDRAWS PLANS TO INTRODUCE A LEAVER STATEMENT INSTEAD OF A P45.............................................................................................................................. 137 REAL TIME INFORMATION AND EX-PATS .................................................................. 138 REAL TIME INFORMATION CUSTOMER USER GROUP MINUTES ............................ 138 AMENDED REGULATIONS FOR REAL TIME INFORMATION PUBLISHED................. 138 Scottish Income Tax ..............................................................................................138 CIPP POLICY SURVEY: CALLING ALL PAYROLL SOFTWARE PROVIDERS ............. 139 Pensions........................................................................................................... 139 Abolition of contracting out on Defined Contribution ........................................139 COUNTDOWN BULLETIN ON THE ABOLITION OF CONTRACTING OUT ON A DC BASIS............................................................................................................................. 139 COUNTDOWN BULLETIN ON THE ABOLITION OF CONTRACTING OUT ON A DC BASIS............................................................................................................................. 139 COUNTDOWN BULLETIN ON THE ABOLITION OF CONTRACTING OUT ON A DC BASIS............................................................................................................................. 139 ABOLITION OF CONTRACTING OUT ON A DC BASIS ................................................ 139 CONTRACTED OUT GUIDANCE BOOKLETS............................................................... 140 COUNTDOWN BULLETIN ON THE ABOLITION OF CONTRACTING OUT ON A DC BASIS............................................................................................................................. 140 FINAL COUNTDOWN BULLETIN ON THE ABOLITION OF CONTRACTING OUT ON A DC BASIS....................................................................................................................... 140 Annual Allowance ..................................................................................................140 AMENDMENTS TO ANNUAL ALLOWANCE REDUCTION DRAFT GUIDANCE............ 140 ANNUAL ALLOWANCE THREE YEAR CARRY FORWARD RULES ............................. 141 Automatic Enrolment.............................................................................................141 GUIDANCE FOR SOFTWARE DEVELOPERS .............................................................. 141 THE PENSIONS REGULATOR SETS OUT HOW IT WILL HELP EMPLOYERS PREPARE ...................................................................................................................... 141 18 MONTHS NOTICE FOR LARGE EMPLOYERS ........................................................ 142 THE PENSIONS REGULATOR HARDSHIP POLICY..................................................... 143 TPR CHECKLIST FOR TRUSTEES ............................................................................... 143 PENSIONS LANGUAGE GUIDE .................................................................................... 144 DRAFT REGULATIONS CONSULTATION..................................................................... 144 JLT GROUP 250 CLUB RESEARCH.............................................................................. 144

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REFUND OF PENSION CONTRIBUTIONS.................................................................... 145 PENSION CONTRIBUTIONS AND OPT OUTS - QUICK SURVEY................................ 145 UNION DEMANDS MORE COVER FOR MARITIME WORKERS .................................. 145 TPR ONLINE TOOLS ..................................................................................................... 146 GUIDE TO WORKPLACE PENSIONS REFORM FOR SOFTWARE DEVELOPERS..... 146 TPR HELPS TRUSTEES TO IDENTIFY THEIR SCHEME’S STATUTORY EMPLOYER146 UPDATE TO WORKPLACE PENSIONS REFORM GUIDANCE .................................... 147 TPR UPDATED GUIDANCE........................................................................................... 147 CIPP POLICY SURVEY: DRAFT REGULATIONS.......................................................... 147 CIPP CONSULATION RESPONSE ............................................................................ 148 PENSION REFORMS AND NEST FAQS ....................................................................... 148 Updated FAQS ........................................................................................................... 148 PENSION REFORMS Q & A UPDATED ........................................................................ 149 CIPP POLICY SURVEY: REFUND OF CONTRIBUTIONS PROCESS........................... 149 AUTOMATIC ENROLMENT EMPLOYER COMMUNICATIONS OUTSOURCED TO CAPITA .......................................................................................................................... 150 DIFFERENCES BETWEEN DC AND DB SCHEMES CLARIFIED.................................. 150 COMMUNICATION VITAL TO SUCCESS OF AUTOMATIC ENROLMENT ................... 150 AUTOMATIC ENROLMENT FOR SMALL EMPLOYERS DELAYED UNTIL 2015 .......... 151 CONSULTATION ON AUTOMATIC ENROLMENT EARNINGS THRESHOLDS: REVIEW AND REVISION 2012 / 13 ............................................................................... 151 PAYROLL INDUSTRY URGED TO APPROACH EMPLOYERS AHEAD OF AUTOMATIC ENROLMENT ........................................................................................... 152 THE GOVERNMENT ARE LAUNCHING AN AUTOMATIC ENROLMENT AWARENESS CAMPAIGN FOR THE ‘DAUNTED’ AND ‘UNPREPARED’............................................. 152 AUTOMATIC ENROLMENT STAGING DATE CHANGES FOR EMPLOYERS WITH LESS THAN 250 EMPLOYEES ...................................................................................... 153 REVISED AUTOMATIC ENROLMENT REGULATIONS PUBLISHED............................ 153 REVISED AUTOMATIC ENROLMENT STAGING DATE BANDS PUBLISHED.............. 153 REVISED AUTOMATIC ENROLMENT REGULATIONS PUBLISHED............................ 154 AUTOMATIC ENROLMENT - WORKPLACE PENSION TOOLKIT UPDATE ................. 154 UPDATED GUIDANCE FOR WORKPLACE PENSIONS REFORM PUBLISHED BY REGULATOR ................................................................................................................. 154 SOFTWARE PROVIDERS – UPDATED TECHNICAL GUIDANCE ON AUTOMATIC ENROLMENT ................................................................................................................. 155 AUTOMATIC ENROLMENT AND EUROPEAN EMPLOYERS CONSULTATION........... 155 PENSIONS REGULATOR SETS OUT APPROACH TO AUTOMATIC ENROLMENT .... 156 UPDATED SOFTWARE COMPANION GUIDE TO WORKPLACE PENSIONS REFORM156 CONSULTATION TO DELAY AUTOMATIC ENROLMENT FOR SMALL EMPLOYERS 157 AUTOMATIC ENROLMENT EARNINGS THRESHOLDS CONFIRMED......................... 157 FIRST OF MANY EMPLOYER OBLIGATIONS FOR AUTOMATIC ENROLMENT ......... 158 CIPP BUDGET CONFERENCE AUTOMATIC ENROLMENT DEBATE.......................... 158 AUTOMATIC ENROLMENT GUIDANCE PUBLISHED BY NAPF................................... 160 NEST (National Employment Savings Trust) .......................................................160 NEST AND UK GOVERNMENT FUNDING .................................................................... 160 NEST AWARDS ETHICAL AND SHARIA MANDATES .................................................. 160 NEST APPOINTS EMPLOYER AND MEMBER PANEL CHAIRS................................... 161 ADDITIONAL TRUSTEE MEMBERS OF NEST CORPORATION .................................. 161 NEST ANNOUNCES RETIREMENT PANEL PROVIDERS ............................................ 161 NEST NEWSLETTER..................................................................................................... 162 PROFESSIONAL PENSIONS GUIDE TO NEST, DC AND CORPORATE WRAPS ....... 162 NEST ANNOUNCES APPOINTEES TO EMPLOYER PANEL AND MEMBER PANEL .. 162 NEST TO ALLOW EMPLOYER CONTRIBUTIONS BY DEBIT CARD............................ 163 DANISH PENSION FUND LAUNCHES SCHEME TO CHALLENGE NEST ................... 163 Danish pension scheme announce costs .................................................................... 163 EMPLOYERS FROM SMALL TO LARGE LINE UP WITH NEST ................................... 163 NEST AWARDS TOP-UP PENSION CONTRACT TO AVIVA ........................................ 164 NEST SIGNS UNITED NATIONS-BACKED PRINCIPLES FOR RESPONSIBLE INVESTMENT ................................................................................................................ 164

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NEST LAUNCHES AUTOMATIC ENROLMENT GUIDE FOR EMPLOYERS ................. 164 SECOND RIVAL TO NEST LAUNCHES WITH SUPER TRUST..................................... 165 NEST INVITES BIDDERS FOR A STERLING BOND FUND MANDATE ........................ 165 NEST SIGNS FRC STEWARDSHIP CODE AND PROCURES EIRIS TO DELIVER RESPONSIBLE OWNERSHIP APPROACH................................................................... 165 GOVERNMENT URGED TO RECONSIDER NEST RESTRICTIONS ............................ 166 BLUESKY ALL EMPLOYER SCHEME LAUNCHED TO RIVAL NEST ........................... 166 NEST RESEARCH SHOWS PENSION JARGON STILL A BARRIER TO SAVING........ 167 DWP CONSIDERS SCRAPPING NEST RESTRICTIONS.............................................. 167 NEST NEWSLETTER..................................................................................................... 168 FURTHER RECOMMENDATIONS TO REMOVE NEST RESTRICTIONS ..................... 168 NEST FINALISES OPT-OUT PROCESS........................................................................ 169 Pensions Bill ..........................................................................................................170 THE PENSIONS BILL FINALLY HAS DATE FOR SECOND READING ......................... 170 PENSIONS BILL PASSES THIRD READING................................................................. 170 PENSIONS BILL AMENDMENTS AGREED................................................................... 171 PENSIONS BILL IS NOW AN ACT OF LAW .................................................................. 171 Pensions General...................................................................................................172 QROPS LOOPHOLE CLOSED BY TREASURY............................................................. 172 EARLY ACCESS TO PENSION SAVINGS AND TRIVIAL COMMUTATION .................. 172 REGULATORY DIFFERENCES IN PENSION SCHEMES TO BE ADDRESSED........... 172 RETROSPECTIVE LEGISLATION FOR MONEY PURCHASE SCHEMES .................... 173 CONSULTATION: THE OCCUPATIONAL PENSION SCHEMES (CONTRACTING-OUT AND MODIFICATION OF SCHEMES) (AMENDMENT) REGULATIONS 2012 .............. 173 PENSION CONTRIBUTIONS AND MATERNITY LEAVE ............................................... 173 SHORT SERVICE PENSION FUNDS TO DISAPPEAR ................................................. 174 TRANSFERRING RULES FOR SMALL PENSION POTS TO BE REVIEWED............... 174 OTS PENSION TAXATION REVIEW.............................................................................. 174 Minutes from first meeting........................................................................................... 175 CLAMPDOWN ON COMPANIES OFFERING CASH INCENTIVES TO LEAVE DB SCHEMES...................................................................................................................... 175 HMRC PENSIONS INDUSTRY STAKEHOLDER FORUM MINUTES ............................ 175 CONSULTATION WILL BE PUBLISHED TO RESOLVE ISSUE OF PENSION TRANSERS, SMALL POTS AND SHORT SERVICE REFUNDS.................................... 176 CONSULTATION ON IMPROVING TRANSFERS AND DEALING WITH SMALL PENSION POTS............................................................................................................. 176 GOVERNMENT CONSULTATION ON EQUALISING PENSION BENEFITS ................. 177 PENSIONS FOR WORKERS WHO CONTRACTED OUT OF SUPPLEMENTARY STATE SCHEME MUST BE EQUALISED...................................................................... 178 PENSIONS MINISTER PROPOSES PLANS FOR DEFINED ASPIRATION PENSIONS178 WARNING AGAINST EARLY RELEASE PENSION OFFERS........................................ 179 NAPF POLL FINDS EMPLOYEES HAVE LOW CONFIDENCE IN PENSIONS INDUSTRY ..................................................................................................................... 179 TRANSFERS TO OVERSEAS PENSION SCHEMES (QROPS) .................................... 180 QROPS COUNTDOWN TO Q DAY................................................................................ 180 Public Sector Pensions .........................................................................................181 TREASURY STATEMENT ON PUBLIC SECTOR PENSIONS....................................... 181 LGPS GIVEN SIX WEEK DEADLINE FOR REFORMS .................................................. 181 CONSULTATION ON REFORMS TO THE TEACHERS’ PENSION SCHEME............... 182 LOWER LGPS ACCRUAL RATE COULD MAKE SHORT-TERM TREASURY SAVINGS182 FIREFIGHTER PENSION REFORM CONSULTATION PUBLISHED............................. 182 COUNCIL EMPLOYERS ARGUE FOR PENSIONS ALTERNATIVE .............................. 183 REFORM OF THE TEACHERS’ PENSION SCHEME .................................................... 183 GOVERNMENT SETS OUT ITS OFFER ON PUBLIC SECTOR PENSIONS ................. 183 DISCUSSIONS CONCLUDED ON PUBLIC SERVICE PENSIONS DETAILS ................ 184 State Pension .........................................................................................................185 STATE PENSION AGE EQUALISATION TO GO AHEAD AS PLANNED....................... 185 DWP CONSULTATION REVEALS BROAD SUPPORT FOR SINGLE TIER STATE PENSION ....................................................................................................................... 185

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NO WOMEN WILL FACE TWO YEAR INCREASE IN STATE PENSION AGE............... 185 DWP Changes to State Pension age .......................................................................... 186 TRANSSEXUAL PEOPLE GET EQUAL STATE PENSION RIGHTS.............................. 187 Powers, Deterrents and Safeguards .............................................................. 188 Business Record Checks ......................................................................................188 CONSULTATION RESPONSE SUMMARY .................................................................... 188 VIDEO EXPLAINS PENALTIES FOR INACCURACIES IN DOCUMENTS AND RETURNS ...................................................................................................................... 188 HMRC REVIEW.............................................................................................................. 189 THE SIMPLIFICATION OF REGULATORY PENALTIES................................................ 189 HMRC’S LITIGATION AND SETTLEMENT STRATEGY ................................................ 189 POWERS TO PREVENT DELIBERATE NON PAYMENT OF PAYE .............................. 189 INTEREST RATES FOR LATE PAYMENTS AND REPAYMENTS................................. 190 REVIEW OF HMRC’S POWERS, DETERRENTS AND SAFEGUARDS......................... 190 HM REVENUE & CUSTOMS BUSINESS RECORD CHECKS....................................... 190 HMRC ALTERNATIVE DISPUTE RESOLUTION TRIAL FOR SMES ............................. 190 Single Compliance.................................................................................................191 HMRC TRIALS SINGLE COMPLIANCE PROCESS....................................................... 191 BRIEFING PAPER FOR TAX AGENTS.......................................................................... 191 BRIEFING PAPER FOR TAX AGENTS.......................................................................... 191 TAX AGENTS BRIEFING UPDATED ............................................................................. 192 HMRC EXTENDS THE EVALUATION PERIOD FOR THE SINGLE COMPLIANCE PROCESS...................................................................................................................... 192 Penalties .................................................................................................................192 VIDEO EXPLAINS PENALTIES FOR INACCURACIES IN DOCUMENTS AND RETURNS ...................................................................................................................... 192 Rates and Allowances..................................................................................... 193 Agricultural Wages (England & Wales) ................................................................193 AGRICULTURAL MINIMUM WAGE RATES FROM 1 OCTOBER 2011 ......................... 193 Agricultural Wages (Scotland) ..............................................................................194 PROPOSED SCOTTISH AGRICULTURAL WAGES AGREED ...................................... 194 CAMPAIGN TO MAINTAIN THE AGRICULTURAL WAGES BOARD (ENGLAND & WALES).......................................................................................................................... 194 CIPP Payroll Factcard............................................................................................194 2012/13 FACTCARD ...................................................................................................... 194 Finance Act 2011....................................................................................................195 THE FINANCE ACT 2011 IS NOW LAW ........................................................................ 195 Self Assessment .............................................................................................. 195 UPDATE ON P46(EXPAT) 0T/BR .................................................................................. 195 EXPATS SA RETURNS.................................................................................................. 195 EXPATS SA RETURNS.................................................................................................. 195 JOINT FORUM ON EXPATRIATE TAX AND NICs – MINUTES OF JUNE MEETING.... 196 SELF ASSESSMENT CUSTOMERS CAN VIEW PAYE CODING NOTICES ONLINE ... 196 HMRC’S EX-PAT COMPOSITE SCHEME...................................................................... 196 SA DONATE WILL CLOSE IN APRIL 2012 .................................................................... 196 Statutory Deductions ...................................................................................... 197 Student Loans ........................................................................................................197 NOTIFICATION OF A THRESHOLD CHANGE FOR STUDENT LOAN BORROWERS IN THE CURRENT INCOME CONTINGENT REPAYMENT (ICR) SCHEME.................. 197 CONSULTATION ON POTENTIAL EARLY REPAYMENT MECHANISMS FOR STUDENT LOANS.......................................................................................................... 197 COLLECTION OF STUDENT LOANS ............................................................................ 197 STUDENT LOAN OVERSEAS BORROWERS ............................................................... 198 NEW GUIDANCE FOR PENSION PAYERS WHO ARE PAYING PENSION INCOME TO STUDENT LOAN BORROWERS.............................................................................. 198 GOVERNMENT RESPONDS TO EARLY STUDENT LOAN REPAYMENT CONSULTATION............................................................................................................ 198 Statutory Payments ......................................................................................... 199

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