The report recommends that the Cabinet Office establishes a working group to look at the benefits of both the Strategic Solution and Centralised Deductions across government. The CIPP welcomes this, as the costs needed to bring about such a radical move need to be considered alongside any potential benefits it would bring. The CIPP hopes we will be given the opportunity to feed into this working group.
Follow this link to read the full report - PAYE at the Crossroads
EMPLOYING PRISONERS: VICTIM SUPPORT CONTRIBUTION FROM PAY
30 July 2012
The CIPP Advisory Service received a query on how to deal with employing prisoners, given that a percentage of their net pay now has to go to victim support.
The query from our member was in regard to paying some prisoners who will be working for them and that they had read that 40% of net earnings must go to victim support. The specific questions asked were:
Do we follow the normal PAYE procedures? What is the process in respect of the 40% going to victim support? Will we receive a deductions order of some sort? Are there any special procedures for dealing with these workers?
The Prisoner’s Earnings Act deals with the amount which goes to victim support and implies that the pay would be given out by the prison governor, but does not indicate who calculates the gross to net, and whether the employer would make the relevant deduction for victim support. Advisory provided the Act for our Member and they then spoke to the relevant prison governor who explained that the pay would be processed as normal, but that the net pay should be sent to the prison governor who then distributes the money to the employed prisoner, after the percentage is deducted for victim support. HMRC also confirmed to our member that this information is correct. Background You may be aware that the government is committed to offenders making reparations to victims and society for the harm they have caused. The Green Paper “Breaking the Cycle: Effective Punishment, Rehabilitation and Sentencing of Offenders” published in December 2010 set out the aims, one of which is to implement the Prisoners’ Earnings Act 1996 (“the PEA”) in respect of payments to victims and the legislation commenced on 26 September 2011. The PEA allows the prison Governor to take a deduction of 40% from an offender’s weekly/monthly earnings over £20, after you (the employer) have made the usual deductions for tax, national insurance and court ordered and child support payments, where applicable. The money raised under the PEA will go to Victim Support, who will use the funds for reparative purposes.
HMRC TO PROVIDE SINGLE PAGE VERSION OF P46
27 July 2012
In response to requests from employers and their representatives, HMRC have now created a single page version of form P46. The new single sided P46 is called P46 (short) and can be found using the find a form tool on the HMRC website from 31 July. This form should not be sent to HMRC it is for internal employer use only.
CIPP Policy News Journal
12/04/2013, Page 168 of 362
Made with FlippingBook - Online magazine maker