TAX AND NICS INTEGRATION CONSULTATION DOCUMENT POSTPONED UNTIL AUTUMN 2012
31 May 2012
Following the already extensive work with stakeholders in 2011, Budget 2012 announced that a more detailed consultation on the proposal to integrate income tax and national insurance would follow. The government has confirmed today that this will not be launched until after the summer.
HM Treasury press release
The Government is currently conducting further work to develop the options for integration. The working groups with employers and tax and payroll professionals identified some challenges with the options explored before the Budget. As many stakeholders have recognised, this is a complex issue with potentially significant implications for employers’ payroll operations. In parallel, the Government is looking in more detail at the interplays between options for integration and reforms to the welfare system. This includes the proposal announced at Budget to reform the State Pension into a single tier pension, details of which will be set out in a forthcoming White Paper. Finally, the Government also respects that some stakeholders have asked that we avoid consulting on this major issue over the summer months, particularly given the London Olympics. For these reasons, a consultation on IT/NICs integration will not be launched until after the summer. However, the Government remains committed to exploring the potential for integration and will provide an update on this work in the autumn. As we have already made clear, this is a long-term reform on which the Government will proceed with care. CIPP comment The CIPP Policy team are pleased that the government are not rushing this consultation through over the summer and that they realise the importance of taking the time to consult in detail with employers and payroll professionals. The technical working groups that were set up in 2011 have been looking at the misalignments between income tax and NICs and also the possibility of annual and/or cumulative NICs so it is imperative that any proposals in these complex areas are considered very carefully. Minutes from both working groups are available to view on HM Treasury’s website
PAYE General
P38(S) WILL NO LONGER BE AVAILABLE FOR USE FROM APRIL 2013
15 March 2012
HMRC’s Software Developers Support Team has made an informal announcement regarding the decision to withdraw student form P38(S).
HMRC have looked at the way that the P38(S) is used by employers today in light of the changed working practices of students. Form P38(S) will no longer be available for use from April 2013. HMRC will discuss the impact the removal of the P38(S) will have with relevant
CIPP Policy News Journal
12/04/2013, Page 163 of 362
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