EXISTING INFORMAL PAYE POOLING AGREEMENTS TO CONTINUE
15 August 2012
HMRC has announced that no further work will be taken to introduce legislative changes giving closely connected employers the option of being treated as a single entity for PAYE purposes, known as PAYE Pooling, during the introduction of Real Time Information (RTI). As a concession HMRC will allow employers who currently have an informal agreement to pool their payrolls to continue with those arrangements until further notice. No new applications to pool payrolls will be accepted.
HMRC will continue to monitor the issues arising with PAYE Pooling with a view to reconsidering the benefits of regulatory change after RTI has been introduced.
Read the PAYE Pooling discussion document (2011)
INCOME TAX RELIEF CAP
20 August 2012
HM Treasury and HMRC are consulting on the implementation of the cap on Income Tax reliefs announced in Budget 2012. No action for payroll on this one as reliefs will continue to be claimed in the normal way by individuals through Self Assessment. Summary Budget 2012 announced a package of measures which combined, raise five times more from high earners than the cost of reducing the additional rate of income tax to 45%. This consultation provides further detail on the cap on unlimited income tax reliefs, which plays an important part in ensuring that those on the highest incomes pay a fairer rate of tax. It consults specifically on the mechanisms for delivering the cap. The cap will come into force next April, and will be set at £50,000 or 25% of an individual’s income, whichever is greater. This measure is about fairness: a tax system should provide relief to support those who take risks by investing in their business or in certain types of shares – but that support should not be without limit. Wealthy individuals should not be able to reduce their income tax bills to zero, year after year by using these income tax reliefs to excess. Unlimited relief is at the cost of the general taxpayer. Further, this policy is not designed to specifically target tax avoidance, but limiting currently uncapped reliefs will reduce the scope for those who wish to exploit these reliefs for tax avoidance purposes. Charitable reliefs support donations to charity by providing tax relief on those donations. At the Budget, the government was clear that it does not want donations to charity to be affected by the relief cap. Therefore, following extensive engagement with the charity sector, the Government has excluded Gift Aid, Relief for gifts of land and shares, Payroll Giving and Community Investment Tax Relief.
Delivering a cap on income tax relief: a technical consultation (closes 5 October 2012)
FILM INDUSTRY PAYE AND NICS GUIDANCE
29 August 2012
CIPP Policy News Journal
12/04/2013, Page 169 of 362
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