The CIPP Policy team will shortly be publishing a survey for members to provide their views but in the meantime below are the questions from the call for evidence so please put your thinking caps on. The majority of the questions are focussed on the burdens employers and payroll professionals face in the day to day operations of income tax and NICs but there are also questions with a more general interest. Section 1: General Interest 1. The Government believes that integrating the operation of income tax and NICs may have the potential to remove distortions, reduce burdens on business and improve fairness. Do you have any comments on these objectives? 2. Of the differences between income tax and NICs listed in Table 1.A (or any others that you consider important) which do you see as the most significant in terms of their impact on: a economic distortions; b burdens on employers; c fairness? 3. What do you think are the most important steps that could be taken to reduce the effects on: 4. Under the current system, how much staff time and/or other resource is required to carry out income tax and NICs processes? Please give a score on a scale from 1 to 5 where 1 is only a small amount of time/resource and 5 is a great deal of time/resource for each of the following: Familiarisation: understanding HMRC’s requirements, legislation and guidance. Retrieval of information: obtaining the information required to run a PAYE payroll. Record keeping: maintaining the records needed for income and NICs purposes e.g. keeping copies of returns/letters where necessary. Calculation: calculating and checking income tax and NICs due (including in-year and end of year processes). Provision of information to HMRC: reporting of information to HMRC e.g. P45s for new employees. Provision of information to employees: reporting and providing information to employees e.g. year end P60s. Payment of liabilities: paying income tax and NICs to HMRC. 5. Which aspects of the current income tax and NICs process work well for your business? 6. Do you carry out income tax and NICs obligations together? Are there any elements you carry out separately? 7. What effect do differences between income tax and NICs have on wider payroll processes such as expenses and benefits, statutory payments and student loans deductions? a economic distortions; b burdens on employers; c fairness? Section 2: Employers and Payroll Professionals General
CIPP Policy News Journal
09/10/2012, Page 116 of 234
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