Policy News Journal - 2012-13

Policy News Journal

2012-13

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.

Several members have asked if there is any way we can highlight recent items that have been added to the Policy News Journal. As a trial from August 22, we are highlighting the titles of the items that have been added in the month of publication, so they will be clearly visible from the index, highlighted in blue.

If you have any comments or suggestions about the Journal, please email policy@cipp.org.uk

CIPP Policy News Journal

12/04/2013, Page 2 of 362

Index

Attachment of Earnings Orders ....................................................................... 18 ATTACHMENT ORDERS: A GUIDE FOR EMPLOYERS – CHANGE OF WEB ADDRESS ........................................................................................................................ 18 Deduction of Earnings Orders ......................................................................... 18 Child Maintenance ...................................................................................................18 CHILD MAINTENANCE DEO CONSULTATION............................................................... 18 CIPP POLICY SURVEY: CHILD MAINTENANCE DEDUCTION FROM EARNINGS ORDERS .......................................................................................................................... 19 CIPP RESPONSE TO CHILD MAINTENANCE DEDUCTION FROM EARNINGS ORDERS .......................................................................................................................... 19 DWP Child Maintenance Service (CMS) – update ........................................................ 19 CHILD SUPPORT MAINTENANCE SCHEME DELAYED ................................................ 20 THE NEW CHILD SUPPORT REGULATIONS LAID ........................................................ 20 DEO SCHEDULE REPORT FORMATS FOR NEW CHILD MAINTENANCE SCHEME ... 21 CHILD MAINTENACE SERVICE CONFIRM CHILD SUPPORT REGULATIONS NOW IN FORCE ........................................................................................................................ 21 AN ALTERNATIVE WAY OF CONTACTING CSA............................................................ 22 Direct Earnings Attachments..................................................................................22 DIRECT EARNINGS ATTACHMENT GUIDE - UPDATE.................................................. 22 DIRECT EARNINGS ATTACHMENTS – EMPLOYER GUIDE.......................................... 22 NEW POWERS TO RECOVER DEBTS OWED TO DWP ................................................ 23 Diligence Against Earnings Deductions ................................................................24 PROPOSED CHANGES TO THE DILIGENCE AGAINST EARNINGS DEDUCTIONS TABLES IN APRIL 2013 ................................................................................................... 24 CHANGE TO DILIGENCE AGAINTS EARNINGS (SCOTLAND) DEDUCTION TABLES . 24 DILIGENCE AGAINTS EARNINGS (SCOTLAND) DEDUCTION TABLES ....................... 25 DILIGENCE AGAINST EARNINGS (SCOTLAND) REGULATIONS ................................. 26 Better Regulation............................................................................................... 27 MAKING TAX EASIER, QUICKER AND SIMPLER FOR SMALL BUSINESS................... 27 CONSULTANCYONE FRAMEWORK GOOD NEWS FOR SMES? .................................. 27 Citizen News....................................................................................................... 28 Migrant Workers.......................................................................................................28 CHANGES TO THE IMMIGRATION RULES .................................................................... 28 UPDATED GUIDANCE ON PREVENTING ILLEGAL WORKING ..................................... 30 UK BORDER AGENCY CHANGES TO APPLICATIONS FROM OVERSTAYERS........... 30 BIOMETRIC RESIDENCE PERMIT.................................................................................. 30 TESCO FACES FINES OVER MIGRANT BREACHES .................................................... 31 ABERDEENSHIRE BUSINESSES FINED MORE THAN £28,000 FOR EMPLOYING ILLEGAL WORKERS........................................................................................................ 31 UK BORDER AGENCY ANNOUNCE CHANGES TO IMMIGRATION RULES ................. 32 CHANGES TO REQUIREMENTS FOR BIOMETRIC RESIDENCE PERMITS ................. 32 Non-domiciles ..........................................................................................................33 CHANGES TO THE TAXATION OF NON-DOMICILED INDIVIDUALS............................. 33 PROPOSALS TO SIMPLIFY THE TAXATION OF NON-DOMICILED INDIVIDUALS ....... 33 Statutory definition of tax residence ......................................................................34 STATUTORY DEFINITION OF TAX RESIDENCE – CONSULTATION RESPONSE ....... 34 STATUTORY DEFINITION OF TAX RESIDENCE AND REFORM OF ORDINARY RESIDENCE..................................................................................................................... 34 STATUTORY RESIDENCE TEST DRAFT GUIDANCE .................................................... 35 Construction Industry ....................................................................................... 35 CONSUTRUCTION INDUSTRY HOLIDAY SCHEME....................................................... 35 CALL FOR EVIDENCE - EU PROPOSAL FOR A POSTING OF WORKERS ENFORCEMENT DIRECTIVE .......................................................................................... 36 Employment Tribunals ...................................................................................... 36 TRANSFERS.................................................................................................................... 36

CIPP Policy News Journal

12/04/2013, Page 3 of 362

EMPLOYEE FAIRLY DISMISSED FOR POSTING VULGAR COMMENTS ABOUT COLLEAGUE.................................................................................................................... 37 DISCRIMINATION AND UNSUCCESSFUL JOB APPLICANTS ....................................... 37 FIRMS WIN RIGHT TO RETIRE WORKERS AT 65 ......................................................... 38 PRIVATE MEMBER’S BILL ON SURROGRACY INTRODUCED ..................................... 39 INDIRECT DISRIMINATION RELATED TO RETIREMENT IS UNLAWFUL ..................... 39 RESIGNATION ‘WITH IMMEDIATE EFFECT’ TAKES IMMEDIATE EFFECT .................. 40 CLARIFICATION ON HOLIDAY LEAVE ACCRUED DURING SICKNESS – EUROPEAN COURT RULING ......................................................................................... 41 BANKERS WIN BONUSES AFTER CEO’S MASS MEETING ANNOUNCEMENT PROVES CONTRACTUALLY BINDING ........................................................................... 42 STRINGFELLOWS DANCER GOES BACK TO TRIBUNAL ............................................. 42 TUPE - PENSION LIABILITIES ........................................................................................ 44 FIRST EMPLOYER IN NORTHERN IRELAND TO BE PROSECUTED UNDER CORPORATE MANSLAUGHTER & CORPORATE HOMICIDE LEGISLATION ............... 45 PILONS AND AFTER-DISCOVERED CONDUCT ............................................................ 45 EMPLOYERS CAN RESTRICT WHAT PAY INCREASES COUNT TOWARDS AN EMPLOYEE’S PENSION.................................................................................................. 46 EARLY RETIREMENT RIGHTS UNDER OCCUPATIONAL PENSION SCHEMES DO TRANSFER UNDER TUPE .............................................................................................. 47 HMRC WINS APPEAL CASE ON NATIONAL INSURANCE PAYMENTS INTO FURBS.. 47 EUROPEAN JUDGEMENT: WORKERS SICK ON HOLIDAY MUST RECLAIM TIME OFF .................................................................................................................................. 48 LONG-RUNNING LOCAL AUTHORITY EQUAL PAY CASE TO PROCEED TO TRIBUNAL........................................................................................................................ 49 FACILITIES STAFF WILL NOT AUTOMATICALLY TRANSFER UNDER TUPE IF CLIENT CHANGES AT THE SAME TIME AS SERVICE PROVIDER............................... 50 REDUCTION IN HEADCOUNT NOT REQUIRED FOR REDUNDANCY .......................... 50 DISABILITY DISCRIMINATION AND SICK LEAVE .......................................................... 51 PREPARING TO COMPETE ............................................................................................ 51 UNFAIR DISMISSAL - REDUNDANCY SCORING........................................................... 51 COURT OF APPEAL RULING CONFIRMS EMPLOYEE ON LONG-TERM SICKNESS ABSENCE CAN CARRY ANNUAL LEAVE FORWARD INTO THE NEXT HOLIDAY YEAR ............................................................................................................................... 52 SECOND MANSLAUGHTER PROSECUTION SINCE ACT INTRODUCED IN 2008 ....... 53 MUTUALITY OF OBLIGATION......................................................................................... 54 DEATH IN SERVICE BENEFIT ........................................................................................ 54 CONSTRUCTIVE DISMISSAL.......................................................................................... 55 UNPAID WORK SCHEME DOES NOT BREACH HUMAN RIGHTS ................................ 55 UMBRELLA CONTRACTS/CONTINUITY OF EMPLOYMENT ......................................... 56 BREACH OF CONTRACT FOR UNDERPAYING CONTRACTUAL SICK PAY ................ 57 COMPENSATORY AWARD AND ENTITLEMENT TO WORK ......................................... 57 TAX AVOIDANCE ‘HAT TRICK’ DELIVERS GOLD .......................................................... 58 THE IMPORTANCE OF TIMELY ACTION WHEN MAKING REASONABLE ADJUSTMENTS FOR DISABILITY................................................................................... 59 EMPLOYMENT STATUS – MINICAB DRIVER................................................................. 60 ARE SOME MORE EQUAL THAN OTHERS?.................................................................. 60 LIMITED LIABILITY PARTNERSHIP MEMBERS ARE NOT WORKERS ......................... 61 QUALIFYING SERVICE REQUIRMENT FOR UNFAIR DISMISSAL CLAIM..................... 61 INDIVIDUALS CAN BE PERSONALLY LIABLE FOR DISCRIMINATING AGAINST A WORK COLLEAGUE........................................................................................................ 62 NATIONAL MINIMUM WAGE: AU PAIRS AND MIGRANT DOMESTIC WORKERS ........ 62 GUARANTEE PAYMENTS............................................................................................... 63 IS AN UNSIGNED CONTRACT OF EMPLOYMENT LEGALLY BINDING? ...................... 63 EUROPEAN COURT TO RULE WHETHER PART-TIME WORK IS A DISABILITY ......... 64 FORMER WORKERS NOW HAVE SIX YEARS TO SUBMIT EQUAL PAY COMPENSATION CLAIMS .............................................................................................. 64 HMRC WINS APPEAL IN HOK P35 LATE FILING PENALTIES CASE ............................ 65 EMPLOYMENT TRIBUNAL: ALLOCATION OF PAYE PAYMENTS ................................. 66

CIPP Policy News Journal

12/04/2013, Page 4 of 362

INDIRECT DISCRIMINATION THROUGH FLEXIBLE WORKING REQUEST REFUSAL. 67 UNLAWFUL DEDUCTIONS FROM WAGES IN PAYMENT OF EXPENSES TRIBUNAL . 67 STYLIST FAILS IN ATTEMPT TO CLAIM WAGES FOR TIME IN JAIL ............................ 68 WHAT SHOULD A TRIBUNAL DO IF AN EMPLOYEE REFUSES TO COOPERATE WITH AN EMPLOYER’S MEDICAL ADVISOR ................................................................. 68 DISCRIMINATION ON GROUNDS OF POLITICAL OPINION.......................................... 68 PERMANENT HEALTH INSURANCE .............................................................................. 69 FIXED TERM CONTRACTS............................................................................................. 70 DEMOTED EMPLOYEE WINS CASE FOLLOWING FACEBOOK POST ......................... 70 WHAT SHOULD BE INCLUDED IN THE HOLIDAY PAY CALCULATION?...................... 71 PAY PROTECTION POLICIES AND THE EQUAL PAY ACT ........................................... 72 CONDITIONAL BENEFITS AND BREACHES OF UNDERTAKINGS ............................... 73 WORKER FIRED FOR GIVING EXTRA SPRINKLES ON A MCFLURRY ........................ 73 WRONGFUL REPUDIATION AND EFFECTIVE TERMINATION ..................................... 74 THE IMPORTANCE OF ADHERING TO DEADLINES ..................................................... 75 INCORPORATION OF COLLECTIVELY AGREED TERMS ............................................. 75 DISMISSAL CAN IT BE REDUNDANCY WHEN IT COULD BE CAPABILITY? ................ 76 RELIGIOUS DISCRIMINATION........................................................................................ 76 EMPLOYMENT STATUS - DEGREE OF CONTROL ....................................................... 77 UNFAIR DISMISSAL RIGHTS TO APPLY TO THOSE SACKED FOR THEIR POLITICAL BELIEFS........................................................................................................ 78 POST-TUPE COLLECTIVE AGREEMENTS .................................................................... 79 THE EAT CONSIDERS APPROPRIATENESS OF FINAL WARNINGS IN UNFAIR DISMISSAL CASE............................................................................................................ 79 EMPLOYER MUST CONSIDER WHETHER A REQUEST FOR DISMISSAL IS REASONABLE – BEFORE DISMISSING! ........................................................................ 80 THE USE OF COMPETENCY ASSESSMENTS IN REDUNDANCY SELECTION ........... 80 INTERIM RELIEF CLAIMS ............................................................................................... 81 COST PROTECTION FOR APPEALS TO COURT OF APPEAL...................................... 81 INJURY TO FEELINGS & AGGRAVATED DAMAGES..................................................... 82 Expenses and Benefits ..................................................................................... 83 Advisory Fuel Rates ................................................................................................83 ADVISORY FUEL RATES – 1 MARCH 2012.................................................................... 83 ADVISORY FUEL RATES – 1 JUNE 2012 ....................................................................... 83 ADVISORY FUEL RATES FROM 1 SEPTEMBER 2012 .................................................. 84 ADVISORY FUEL RATES – COMPANY CARS AS FROM 1ST DECEMBER 2012 ......... 84 ADVISORY FUEL RATES AS FROM 1 MARCH 2013 ..................................................... 85 AMAPs ......................................................................................................................85 APPROVED MILEAGE ALLOWANCE PAYMENTS (RATES) STATUTORY INSTRUMENT .................................................................................................................. 85 Company Cars..........................................................................................................86 COMPANY CAR TAX FOR SECURITY ENHANCED CARS ............................................ 86 SECURITY ENHANCED CARS – P11D GUIDANCE ....................................................... 86 COMPANY CAR AND CAR FUEL BENEFIT CALCULATOR UPDATED.......................... 86 COMPANY CAR AND CAR FUEL BENEFIT CALCULATOR UPDATED.......................... 86 Cycle to Work ...........................................................................................................87 REMOVAL OF MEAL PROVISION ON CYCLE TO WORK DAYS ................................... 87 Employer Supported Childcare ..............................................................................87 CIPP POLICY SURVEY: NEW CHILDCARE VOUCHERS IMPACT ASSESSMENT FOLLOW UP .................................................................................................................... 87 CHILDCARE VOUCHER IMPACT SURVEY RESULTS ................................................... 88 BUSY BEES CAMPAIGNING TO RAISE CHILDCARE VOUCHER ALLOWANCE FROM £55 TO £75 ........................................................................................................... 88 CHANGES TO THE VALUE OF THE TAX EXEMPTION FOR EMPLOYER SUPPORTED CHILDCARE.............................................................................................. 88 HMT ANNOUNCES TAX FREE CHILDCARE FOR 2.5. MILLION WORKING FAMILIES. 89 Expense and Benefits - General .............................................................................89 HMRC CONFIRM MONTHLY GUIDELINE RATE TO BE USED FOR HOME WORKERS....................................................................................................................... 89

CIPP Policy News Journal

12/04/2013, Page 5 of 362

AMENDMENTS TO CWG5(2012) CLASS 1A NICS ON BENEFITS IN KIND................... 90 CHANGES TO EXPENSES AND BENEFITS TABLES..................................................... 90 BENEFITS IN KIND STATISTICS PUBLISHED................................................................ 91 BENEFICIAL LOAN ARRANGEMENTS INTEREST RATE .............................................. 91 LIST 3 UPDATED............................................................................................................. 91 Payrolling..................................................................................................................92 HMRC WILL NO LONGER ACCEPT PAYROLLED BENEFIT DETAILS ON A CD........... 92 P11D..........................................................................................................................92 480 (2012) EXPENSES AND BENEFITS BOOKLET........................................................ 92 P11D(b) Return of Class 1A National Insurance Contributions – 1st Interim Penalty for outstanding 2011-12 returns ............................................................................................. 92 P11D FORMS NOW AVAILABLE FOR 2012 -13.............................................................. 93 Salary Sacrifice ........................................................................................................93 AUTOMATIC ENROLMENT OPT OUT AND SALARY SACRIFICE ................................. 93 AUTOMATIC ENROLMENT OPT OUT AND SALARY SACRIFICE ................................. 94 HMRC General.................................................................................................... 94 HMRC PRODUCE SIMPLE RECORD KEEPING ‘APP’ FOR BUSINESSES BELOW THE VAT THRESHOLD ................................................................................................... 94 NEW ONLINE TAX REGISTRATION SERVICE (OTRS) .................................................. 94 BUSINESS TAX DASHBOARD ........................................................................................ 95 VAT VIEW ADDED TO BUSINESS TAX DASHBOARD ............................................... 96 HMRC ANNOUNCES TAX REFUNDS TO COME EARLY ............................................... 96 HELP FOR EMPLOYERS WHO THINK THEY MAYBE OPERATING A WRONG TAX CODE FOR AN EMPLOYEE. ........................................................................................... 97 HMRC LAUNCH TAX CALCUALTOR............................................................................... 97 SIX TASKFORCES LAUNCHED TO TACKLE TAX DODGERS ....................................... 98 GOVERNMENT CONFIRMS U-TURN ON TAX RELIEF LIMIT FOR CHARITABLE DONATIONS .................................................................................................................... 98 HMRC ONLINE SECURITY BRIEFING............................................................................ 99 ADDITIONAL TASKFORCES LAUNCHED ON TAX EVADERS....................................... 99 HMRC TO PROVIDE SINGLE PAGE VERSION OF P46 ................................................. 99 HMRC TO RECRUIT 1,000 ADDITIONAL CONTACT CENTRE STAFF .......................... 99 NEW HMRC TRACKER ADVISING WHEN TO EXPECT A REPLY TO AN ENQUIRY .. 100 LEGAL PROFESSION TARGETED IN TAX CHEAT CRACKDOWN.............................. 100 GOV.UK TO REPLACE BUSINESS LINK WEBSITE...................................................... 101 CWG2 HELPBOOK UPDATED ...................................................................................... 101 NEW HMRC ADDRESSES FOR POST.......................................................................... 102 HMRC EMPLOYER BULLETIN ...................................................................................... 102 HMRC INVITES SMALL FIRMS TO SIGN UP FOR EMAIL HELP.................................. 102 HMRC PUBLISHES CALL HANDLING STATISTICS FOR ITS CONTACT CENTRES... 103 Change of address for employees .................................................................................. 103 ADDITIONAL TASKFORCES LAUNCHED ON TAX EVADERS..................................... 104 CUSTOMER SURVEY ON THE HMRC OFFICIAL AND NATIONAL STATISTICS WEBSITE ....................................................................................................................... 104 HMRC SINGLE BANK ACCOUNT FROM APRIL 2013 .................................................. 104 THE IMPORTANCE OF USING CORRECT PAYMENT REFERENCE NUMBERS........ 105 HMRC WEEKLY UPDATE TO STAKEHOLDERS .......................................................... 105 UPDATE FROM SOFTWARE DEVELOPERS SUPPORT TEAM................................... 106 HMRC WARN – DON’T GET CAUGHT BY EMAIL SCAMS ........................................... 107 EMPLOYER BULLETIN NUMBER 43 ............................................................................ 107 HMRC WEEKLY UPDATE 15 FEBRUARY 2013............................................................ 108 HMRC – HOW WE ARE DOING..................................................................................... 109 HMRC NAMING AND SHAMING DELIBERATE TAX DEFAULTERS............................. 109 STILL RECEIVING CHILD BENEFIT AND EARNING OVER £50,000?.......................... 110 HMRC SERVICE UPGRADE AND CLOSURE OF ONLINE SERVICES ........................ 110 HMRC SERVICE UPDATE............................................................................................. 111 NEW DOUBLE TAXATION CONVENTIONS SIGNED FOR NORWAY AND SPAIN ...... 111 HMRC NAMES AND SHAMES IN ANOTHER CASE OF FRAUD .................................. 111 HMRC CONSULTATION - SUPPORTING CUSTOMERS WHO EXTRA HELP ............. 112

CIPP Policy News Journal

12/04/2013, Page 6 of 362

HMRC TENTH WEEKLY STAKEHOLDER UPDATE...................................................... 113 HMRC ELEVENTH WEEKLY STAKEHOLDER UPDATE............................................... 114 HMRC TWELFTH WEEKLY STAKEHOLDER UPDATE................................................. 115 NO LONGER SELF EMPLOYED? DON’T FORGET TO TELL HMRC ........................... 116 Digital by Default....................................................................................................117 ONE CLICK UPDATE..................................................................................................... 117 HMRC TRANSFORMS DEALINGS WITH SMALL AND MEDIUM ENTERPRISES .... 117 Employment Consultation Forum (ECF) ..............................................................118 LATEST EMPLOYMENT CONSULTATION FORUM MINUTES PUBLISHED................ 118 EMPLOYMENT CONSULTATION FORUM MINUTES PUBLISHED .............................. 119 Tax Agents and Advisers ......................................................................................119 JOINT TAX AGENT STRATEGY STEERING GROUP ................................................... 119 AGENT UPDATE 29....................................................................................................... 120 HMRC PUBLISHES FINDINGS FROM JOINT INITATIVE WITH AGENTS .................... 120 WORKING TOGETHER PUBLICATION FOR TAX AGENTS AND ADVISERS.............. 120 AGENT UPDATE 30....................................................................................................... 120 TAX AGENTS AND ADVISERS – ADDITIONAL SPEAKER TOPICS INCLUDE RTI...... 121 TAX AGENTS AND ADVISERS – EXTERNAL EMAIL PILOT ........................................ 121 SENDING LETTERS TO HMRC ABOUT SELF ASSESSMENT AND PAYE .................. 121 UPDATE ON JOINT INITIATIVE ON HMRC SERVICE DELIVERY................................ 122 TAX AGENT STRATEGY ............................................................................................... 122 AGENT UPDATE 31....................................................................................................... 123 HMRC REAL TIME INFORMATION EVENTS FOR TAX AGENTS AND ADVISERS ..... 123 NEW HMRC LEARNING MODULES FOR TAX AGENTS AND ADVISERS ................... 124 EXTERNAL EMAIL PILOT FOR AGENTS...................................................................... 124 SINGLE COMPLIANCE PROCESS UPDATE FOR AGENTS ........................................ 124 AGENT UPDATE 32....................................................................................................... 125 NEW RTI LEARNING TOGETHER EVENTS IN WALES................................................ 125 HMRC AND TAX AGENTS............................................................................................. 125 THE TAX AGENT STRATEGY ....................................................................................... 126 UPDATE ON THE EMAIL PILOT FOR AGENTS............................................................ 127 WORKING WITH TAX AGENTS – DISHONEST CONDUCT ......................................... 128 TAX AGENTS AND ADVISERS – AGENT AUTHORISATION ....................................... 128 AGENT UPDATE 33....................................................................................................... 129 HMRC AGENT UPDATE – ISSUE 34............................................................................. 129 DISHONEST TAX AGENTS ........................................................................................... 130 National Insurance........................................................................................... 130 Regional Employer NICs Holiday .........................................................................130 REGIONAL EMPLOYER NICS HOLIDAY ...................................................................... 130 REGIONAL EMPLOYER NICS HOLIDAY END OF YEAR RETURNS............................ 130 FSB SAYS EXTENDING NICS HOLIDAY WOULD CREATE 45,000 JOBS ................... 131 REGIONAL EMPLOYER NICs HOLIDAY FOR NEW BUSINESSES.............................. 132 National Insurance - General ................................................................................132 NEW NATIONAL INSURANCE RULES FOR FLIGHT AND CABIN CREW.................... 132 CHANGES TO NATIONAL INSURANCE RULES FOR PEOPLE GOING TO OR COMING FROM NORWAY, ICELAND AND LIECHTENSTEIN...................................... 133 REMOVAL OF SOME OCCUPATIONS LISTED FOR NICS PURPOSES ...................... 133 CONFIRMATION OF YOUR NATIONAL INSURANCE NUMBER .................................. 134 IMPORTANT INFORMATION FOR SLEEPING AND INACTIVE LIMITED PARTNERS ABOUT THEIR LIABILITY TO PAY CLASS 2 AND 4 NATIONAL INSURANCE CONTRIBUTIONS. ......................................................................................................... 134 National Minimum Wage (NMW)..................................................................... 135 NEW NMW RATES APPROVED FROM OCTOBER 2012 ............................................. 135 LOW PAY COMMISSION REMIT PUBLISHED .............................................................. 135 LOW PAY COMMISSION CONSULATION ON NATIONAL MINIMUM WAGE ............... 136 POLICY ON NAMING EMPLOYERS WHO FLOUT NATIONAL MINIMUM WAGE LAW 136 CIPP POLICY SURVEY ON NATIONAL MINIMUM WAGE 2013 ................................... 137 CIPP RESPONSE TO LOW PAY COMMISSION CONSULTATIONS ON THE NATIONAL MINIMUM WAGE AND THE ACCOMMODATION OFFSET ........................ 138

CIPP Policy News Journal

12/04/2013, Page 7 of 362

CIPP Policy News Journal 12/04/2013, Page 8 of 362 EMPLOYER FLOUTING NMW RULES IS NAMED ........................................................ 138 NATIONAL MINIMUM WAGE FROM OCTOBER 2012 .................................................. 138 BIS – NATIONAL MINIMUM WAGE COMPLIANCE & ENFORCEMENT ....................... 138 ENFORCING THE NATIONAL MINIMUM WAGE........................................................... 139 LOW PAY COMMISSION (LPC) TRIENNIAL REVIEW: MARCH 2013........................... 139 Pay As You Earn .............................................................................................. 139 Autumn Statement 2012 ........................................................................................139 CHANCELLOR TO DELIVER AUTUMN STATEMENT ON 5 DECEMBER 2012............ 140 AUTUMN STATEMENT DECEMBER 2012 .................................................................... 140 Personal Tax/Benefits and Credits.................................................................................. 140 Pensions Savings - Tax Relief ........................................................................................ 141 Business Tax .................................................................................................................. 141 Other Taxes - Fuel Duty, Air Passenger Duty (APD), Inheritance Tax (IHT) ................... 142 Anti-Avoidance and Evasion ........................................................................................... 142 Reducing tax credit error fraud and debt......................................................................... 142 Recovering Debt............................................................................................................. 143 Digital Services............................................................................................................... 143 Budget 2012............................................................................................................143 Cap on unlimited tax reliefs............................................................................................. 144 PAYE Penalties .............................................................................................................. 145 Child Benefit income tax charge ..................................................................................... 145 Car and van fuel benefit charge 2012-13 & 2013-14....................................................... 145 Company Car Tax Rates 2014-15 to 2016-17................................................................. 145 Corporation Tax Rates.................................................................................................... 146 Automatic Review of State Pension Age (SPA) .............................................................. 146 Single Tier Pension......................................................................................................... 146 VAT: revalorisation of registration and deregistration thresholds..................................... 146 Tax simplification for small businesses ........................................................................... 147 Tax Transparency........................................................................................................... 147 Integration of income tax and National Insurance contributions ...................................... 147 Tax Avoidance................................................................................................................ 148 Employer asset-backed pension contributions ................................................................ 148 Qualifying Recognised Overseas Pensions Schemes (QROPS)..................................... 148 Budget 2013............................................................................................................148 Employment Allowance for businesses........................................................................... 149 Company Car Tax .......................................................................................................... 149 New Childcare Scheme from 2015 ................................................................................. 149 Income Tax Personal Allowance..................................................................................... 149 Exemption threshold for employer provided beneficial loans........................................... 150 Collection of debts through PAYE tax codes................................................................... 150 Pension Tax Relief.......................................................................................................... 150 Individual tax relief protection ......................................................................................... 150 Income Tax/NI treatment for employee shareholders...................................................... 150 Self-employed NICs simplification consultation............................................................... 150 Confirmation of small business tax simplification ............................................................ 150 Corporation Tax reduction .............................................................................................. 150 Collecting Small Debts through PAYE .................................................................151 CODING OUT SMALL DEBTS – Q & As ........................................................................ 151 Employee Share Schemes ....................................................................................151 TAX CODE LEGISLATION CHANGE FOR SHARED BASED EARNINGS Q & A .......... 151 FAQ ON SHARE BASED PAYMENTS TO AN EMPLOYEE AFTER THEY HAVE LEFT 151 HMRC CONSULTATION ON EMPLOYEE SHARE SCHEMES...................................... 151 P14S AND PAYMENTS MADE AFTER CESSATION OF EMPLOYMENT ..................... 152 CWG2 GUIDANCE UPDATED ................................................................................... 152 EMPLOYMENT RELATED SHARES AND SECURITIES BULLETIN ............................. 152 REVISED FAQS FOR SHARE-BASED PAYMENTS TO AN EMPLOYEE AFTER THEY HAVE LEFT.................................................................................................................... 153 CONSULTATION ON EMPLOYEE SHARE SCHEMES ................................................. 153 EMPLOYMENT RELATED SHARES AND SECURITIES BULLETIN ............................. 154

SHARE AND SHARE ALIKE: JOINT CIPP & AAT SURVEY .......................................... 154 EMPLOYMENT RELATED SHARES & SECURITIES BULLETIN .................................. 155 EMPLOYMENT RELATED SHARES AND SECURITIES BULLETIN ............................. 155 EMPLOYMENT RELATED SHARES AND SECURITIES BULLETIN ............................. 155 EMPLOYMENT-RELATED SHARES & SECURITIES BULLETIN .................................. 156 EMPLOYMENT-RELATED SHARES & SECURITIES BULLETIN .................................. 157 Employer Annual Return .......................................................................................157 UPDATED GUIDANCE ON CORRELATION ID ............................................................. 157 Extra Statutory Concession - ESC A19 ................................................................157 EXTRA STATUTORY CONCESSION A19 CONSULTATION ........................................ 157 HAVE YOUR SAY ON EXTRA STATUTORY CONCESSION A19 REVIEW .................. 158 Finance Act 2012....................................................................................................159 THE FINANCE ACT 2012 IS NOW LAW ........................................................................ 159 Finance Bill (draft) 2013.........................................................................................159 DRAFT FINANCE BILL 2013.......................................................................................... 159 FINANCE ACT 2013....................................................................................................... 161 Integration of tax and NICs ...................................................................................161 INTEGRATING THE OPERATION OF TAX AND NICS: NEXT STEPS.......................... 162 TAX AND NICS INTEGRATION CONSULTATION DOCUMENT POSTPONED UNTIL AUTUMN 2012 ............................................................................................................... 163 PAYE General .........................................................................................................163 P38(S) WILL NO LONGER BE AVAILABLE FOR USE FROM APRIL 2013 ................... 163 P38(S) Guidance updated .......................................................................................... 164 HMRC ISSUE STATEMENT OVER ACCRUED LATE FILING FINES FOR P35 ............ 165 SENIOR INDIVIDUALS USING PERSONAL SERVICE COMPANIES TO HAVE TAX DEDUCTED AT SOURCE .............................................................................................. 166 CENTRALISED DEDUCTIONS SUGGESTED BY 'PAYE AT THE CROSSROADS' REPORT ........................................................................................................................ 167 EMPLOYING PRISONERS: VICTIM SUPPORT CONTRIBUTION FROM PAY ............. 168 HMRC TO PROVIDE SINGLE PAGE VERSION OF P46 ............................................... 168 EXISTING INFORMAL PAYE POOLING AGREEMENTS TO CONTINUE ..................... 169 INCOME TAX RELIEF CAP............................................................................................ 169 FILM INDUSTRY PAYE AND NICS GUIDANCE ............................................................ 169 P800 TAX CALCUALTION WEEK 53 GUIDANCE.......................................................... 170 TREASURY TO LAUNCH CONSULTATION ON PAYROLL GIVING ............................. 170 NO FURTHER CUTS TO TOP TAX RATE? ................................................................... 170 MARRIED COUPLES WILL NOT GET TAX BREAK BEFORE 2015 .............................. 171 MPS CALL FOR A RISE IN 40P TAX THRESHOLD ...................................................... 171 PAYE TAX CODE CHANGE – TRIVIAL COMMUTATION.............................................. 172 CHANGE TO TAX CODE USED ON TRIVIAL COMMUTATION AND SIMILAR OTHER LUMP SUM PENSION PAYMENTS ............................................................................... 173 GOVERNMENT CONSIDERING REDUCTION OF TAX AND NI IN NEW ‘EMPLOYEE OWNERS’ PROPOSALS................................................................................................ 173 TAXATION OF CONTROLLING PERSONS – PLANS WITHDRAWN ............................ 173 HIGH INCOME CHILD BENEFIT TAX CHARGE COMES INTO EFFECT 7 JANUARY 2013 ............................................................................................................................... 174 HMRC POSTS MUG SHOTS OF TAX CHEATS ............................................................ 174 NO EMPLOYER ANNUAL RETURN TO MAKE ............................................................. 174 UPDATE TO TRADITIONAL HMRC BASIC PAYE TOOLS ............................................ 175 HMRC PAYMENT BOOKLET ISSUE FOR 2013-14 ....................................................... 175 IR35 TO APPLY TO OFFICE HOLDERS FROM 6 APRIL 2013 ..................................... 175 Rates and Thresholds............................................................................................176 INCOME TAX RATES AND THRESHOLDS FOR 2012-13............................................. 176 2012 STATUTORY PAYMENT RATES AND THRESHOLDS......................................... 177 DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (LIMITS AND THRESHOLDS) (AMENDMENT) REGULATIONS 2012 ........................................................................... 178 NEW RATES FOR REDUNDANCY PAY FROM 1ST FEBRUARY 2013 ........................ 178 CLASS 1 NIC THRESHOLDS AND STATUTORY PAYMENT RATES FOR 2013/2014 . 179 STATUTORY PAYMENT RATES ................................................................................... 180

CIPP Policy News Journal

12/04/2013, Page 9 of 362

AUTO ENROLMENT PRP THRESHOLDS 2013/2014 ................................................... 180 Real Time Information ...........................................................................................181 AMENDED REGULATIONS FOR REAL TIME INFORMATION PUBLISHED................. 181 PAYE REAL TIME INFORMATION PILOT BEGINS ....................................................... 182 REAL TIME INFORMATION GUIDANCE FOR PILOT EMPLOYERS............................. 183 RTI PILOT FORGES ON ................................................................................................ 183 WHEN MIGHT YOU NEED TO DO RTI?........................................................................ 184 REAL TIME INFORMATION BRIEFING PUBLISHED .................................................... 184 HMRC RECOGNISED PAYE REAL TIME INFORMATION PRODUCTS ....................... 184 REAL TIME INFORMATION “ON OR BEFORE” SURVEY ............................................. 185 EDI CONFIRMED FOR RTI UNTIL 2016/17................................................................... 185 RTI TECHNICAL PACK UPDATE - SOFTWARE DEVELOPERS ONLY ........................ 186 RTI UPDATED MIGS - SOFTWARE DEVELOPERS ONLY ........................................... 186 HMRC ISSUES CONSULTATION DOCUMENT ON RTI PENALTIES ........................... 186 SCOPE EXPANDS FOR REAL TIME INFORMATION PILOT ........................................ 187 REAL TIME INFORMATION - TECHNICAL INFORMATION FOR EDI SOFTWARE DEVELOPERS ............................................................................................................... 188 REAL TIME INFORMATION - TECHNICAL INFORMATION FOR INTERNET SOFTWARE DEVELOPERS .......................................................................................... 188 RTI PILOT GOES FROM STRENGTH TO STRENGTH ................................................. 188 CENTRALISED DEDUCTIONS SUGGESTED BY 'PAYE AT THE CROSSROADS' REPORT ........................................................................................................................ 189 HMRC RTI VIDEO AND WEBINAR PUBLISHED ........................................................... 190 RTI FAQS ON EXPATS PUBLISHED............................................................................. 190 CHANGES TO PAYE ONLINE WHEN REPORTING IN REAL TIME ............................. 190 HMRC CONSULTATION ON RTI COMPLIANCE – CIPP POLICY SURVEY ................. 190 REAL TIME INFORMATION – REVISED AGREEMENTS FROM APRIL 2013 .............. 191 CIPP RESPONSE TO RTI COMPLIANCE CONSULTATION......................................... 192 HMRC RESEARCH FOR THE RTI PROJECT ............................................................... 192 HMRC EMPLOYER BULLETIN ...................................................................................... 192 RTI RUMOURS QUASHED............................................................................................ 192 STUDENT LOANS AND REPORTING PAYE INFORMATION IN REAL TIME ............... 193 REAL TIME INFORMATION LETTERS BEING SENT TO ALL EMPLOYERS IN OCTOBER...................................................................................................................... 194 HMRC REAL TIME INFORMATION EVENTS FOR TAX AGENTS AND ADVISERS ..... 194 REAL TIME INFORMATION STARTING DATES FOR NON-STANDARD PAYE SCHEMES...................................................................................................................... 195 HMRC REAL TIME INFORMATION REJECTION - THE FACTS.................................... 196 HMRC STILL SHAPING THE PROPOSED REAL TIME INFORMATION PENALTY MODEL........................................................................................................................... 196 RTI P46 CAUSING CONFUSION................................................................................... 197 CIPP MEMBERS PROVIDE HMRC WITH ADDITIONAL INFORMATION FOR REAL TIME INFORMATION PENALTY MODEL ...................................................................... 197 NEW RTI LEARNING TOGETHER EVENTS IN WALES................................................ 198 REAL TIME INFORMATION “ON OR BEFORE” ............................................................ 198 RTI P46 REFERENCE CAUSING CONFUSION ............................................................ 198 REAL TIME INFORMATION PILOT HITS THE NEXT LEVEL ........................................ 199 New RTI Webinar ........................................................................................................... 199 REAL TIME INFORMATION – EP APPENDIX 6, 7A AND 7B AGREEMENTS............... 200 REAL TIME INFORMATION DRAFT AMENDMENTS TO REGULATIONS.................... 200 RTI SOFTWARE UPGRADE COSTS............................................................................. 201 REAL TIME INFORMATION GUIDANCE ON PENALTIES FOR 2012/13 AND 2013/14 201 REAL TIME INFORMATION CUSTOMER INSIGHT RESEARCH.................................. 202 REAL TIME INFORMATION – EXPATS AND EMPLOYMENT RELATED SECURITIES 202 PILOT EMPLOYER UPDATE FOR REAL TIME INFORMATION ................................... 203 REAL TIME INFORMATION - 'RTI AT A GLANCE’ GUIDE FOR EMPLOYERS............. 203 SECURING COMPLIANCE WITH REAL TIME INFORMATION FOR PAYE .................. 204 NINO VERIFICATION REQUESTS ................................................................................ 205 REAL TIME INFORMATION FAQS FOR EXPATS......................................................... 205

CIPP Policy News Journal

12/04/2013, Page 10 of 362

REAL TIME INFORMATION PROCEDURES ................................................................. 205 P46 (SHORT) & HMRC P46 PROCESS CHANGES SURVEY ....................................... 207 HMRC WEBSITE AND THE ROLL OUT OF RTI GUIDANCE ........................................ 207 NEW SCHEME REFERENCE NOT RECEIVED IN TIME FOR FIRST FPS; WHAT DO I DO?................................................................................................................................ 208 HMRC STAKEHOLDER ENGAGEMENT IMPORTANCE AND THE CUG ISSUES LOG208 HMRC - COMMUNICATING IN REAL TIME................................................................... 209 PAYROLL ID - WHAT IS IT AND WHY DOES HMRC NEED IT? ................................... 210 RTI SPECIAL INTEREST GROUP - ANNUAL SCHEMES ............................................. 210 HMRC WEBSITE – RTI GUIDANCE .............................................................................. 210 RTI AND BACS COSTS SURVEY RESULTS................................................................. 211 RTI EXAMPLES OF PAYROLLS RUN AROUND 6 APRIL 2013 .................................... 211 HMRC TO GIVE REAL TIME SUPPORT - IN REAL TIME ............................................. 212 HMRC RESPONSE TO CUG CONCERNS OVER UNDERPAYMENT NOTICES .......... 212 HMRC WEEKLY UPDATE 1 MARCH 2013 .................................................................... 213 PAYE – LET US TAKE A LOOK BACK TO 1944............................................................ 214 RTI - HMRC PILOT FEBRUARY 2013 UPDATE ............................................................ 214 RTI AMENDMENT TO STARTER PROCESS ................................................................ 215 HMRC WEEKLY UPDATE 8 MARCH............................................................................. 216 HMRC BRIEFING: REPORTING AND PAYING HMRC IN REAL TIME.......................... 217 THE RTI EXPERIENCE – JUST IN CASE YOU WERE WONDERING WHAT IT WILL BE LIKE?........................................................................................................................ 217 RTI - RELAXATION OF REPORTING FOR SMALL BUSINESS .................................... 218 RTI MIGRATION DEDICATED SUPPORT TO CLOSE – BUSINESS AS USUAL FROM 6 APRIL .......................................................................................................................... 218 HMRC CONTINUE TO URGE EMPLOYERS TO BE READY FOR RTI ......................... 219 HMRC WEEKLY NEWSLETTER 15 MARCH ................................................................. 220 BASIC PAYE TOOLS (BPT) – TAX YEAR END IN REAL TIME ..................................... 221 HMRC WEEKLY UPDATE 22 MARCH 2013 .................................................................. 221 RTI STARTER GUIDANCE UPDATE ............................................................................. 223 HMRC PILOT UPDATE – MARCH 2013 ........................................................................ 223 ARE YOU AND YOUR CLIENTS ALL SHOOK UP OVER RTI? ..................................... 223 HMRC PUBLISHES NEW GUIDANCE FOR REAL TIME INFORMATION ..................... 224 Scottish Income Tax ..............................................................................................225 SCOTLAND BILL RECEIVES ROYAL ASSENT............................................................. 225 SCOTLAND ACT 2012 AVAILABLE ONLINE................................................................. 226 CLARIFYING THE SCOPE OF THE SCOTTISH RATE OF INCOME TAX..................... 226 PLANS TO CREATE A ‘SCOTTISH REVENUE’............................................................. 226 Pensions........................................................................................................... 227 Abolition of contracting out on Defined Contribution ........................................227 CONTRACTED OUT GUIDANCE BOOKLETS............................................................... 227 FINAL COUNTDOWN BULLETIN ON THE ABOLITION OF CONTRACTING OUT ON A DC BASIS....................................................................................................................... 227 SHORT SERVICE REFUNDS FROM PENSION SCHEMES AND CHANGES TO THE RULES ON CONTRACTING OUT.................................................................................. 227 PENSION SCHEMES SERVICES CONTRACTING OUT FORMS ................................. 228 WITHDRAWAL OF CONTRACTING-OUT DEFINED CONTRIBUTION (DC) FORMS ... 228 Automatic Enrolment.............................................................................................228 AUTOMATIC ENROLMENT EARNINGS THRESHOLDS CONFIRMED ........................ 228 FIRST OF MANY EMPLOYER OBLIGATIONS FOR AUTOMATIC ENROLMENT ......... 229 AUTOMATIC ENROLMENT OPT OUT AND SALARY SACRIFICE ............................... 229 DWP AND TPR JOIN FORCES AND LAUNCH AN EMPLOYER COMMUNICATION WEBSITE ....................................................................................................................... 230 CIPP POLICY SURVEY RESPONSE: REVISED IMPLEMENTATION PROPOSALS FOR AUTOMATIC ENROLMENT................................................................................... 230 CAREER AVERAGE SCHEMES AS QUALIFYING SCHEMES CONSULTATION......... 231 CIPP SURVEY ON AUTO-ENROLMENT: HELP US TO FIND OUT WHERE BUSINESSES ARE IN THEIR PREPARATIONS............................................................ 231

CIPP Policy News Journal

12/04/2013, Page 11 of 362

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132 Page 133 Page 134 Page 135 Page 136 Page 137 Page 138 Page 139 Page 140 Page 141 Page 142 Page 143 Page 144 Page 145 Page 146 Page 147 Page 148 Page 149 Page 150 Page 151 Page 152 Page 153 Page 154 Page 155 Page 156 Page 157 Page 158 Page 159 Page 160 Page 161 Page 162 Page 163 Page 164 Page 165 Page 166 Page 167 Page 168 Page 169 Page 170 Page 171 Page 172 Page 173 Page 174 Page 175 Page 176 Page 177 Page 178 Page 179 Page 180 Page 181 Page 182 Page 183 Page 184 Page 185 Page 186 Page 187 Page 188 Page 189 Page 190 Page 191 Page 192 Page 193 Page 194 Page 195 Page 196 Page 197 Page 198 Page 199 Page 200

Made with FlippingBook - Online magazine maker