`The Chartered Institute of Payroll Professionals
News On Line
Inflation rises to 9.4% Published: 20 July 2022 Emailed: 20 July 2022
The Office of National Statistics (ONS) release monthly inflation statistics, today's figures show June's Consumer Price Index (CPI) at 9.4%.
The rate increased by 0.3% from May to June, after a 0.1% increase from April to May. Costs of housing, household services and fuel rising all contribute to the rise.
The June 2022 figure is the highest recorded annual inflation rate since January 1997, which is when records began. Based on historic estimates, the last time inflation was this high was in 1982.
Back to contents
4 August 2022 – Cycle to Work Day Published: 1 August 2022 Emailed: 3 August 2022
4 August 2022 is Cycle to Work Day and is the perfect opportunity to review if implementing a scheme in your workplace would be beneficial.
Not only can cycling to work be a great way to keep active and get fit, it can also reduce fuel use and reliance on cars. With current petrol prices, this can only be a good thing, but this also help on the road to net zero for many companies and the country as a whole. Additionally, eligible Cycle to Work Schemes can be paid for through salary sacrifice and benefit from tax exemptions. This means employees can pay less tax and National Insurance (NI) contributions and employers will pay less NI contributions and apprenticeship levy (where applicable). Situations that bring such a big benefit to both employees and employers are very rare and well worth the consideration for businesses who can implement them. Cycles and safety equipment are exempt from tax on income if the following conditions are met: • the cycles or equipment are available generally to all employees (the offer of cycles or equipment must be open to all employees if they wish to take it) • the employees must use the cycle or equipment mainly for qualifying journeys, other uses do not disqualify the exemption as long as it is not the main use of the cycle.
The Department for Transport has published some Cycle to work scheme implementation guidance for employers. This guidance covers the benefits, eligibility and salary sacrifice impacts of such a scheme.
Back to contents
Bank of England sets interest rates at 1.75% Published: 4 August 2022 Emailed: 10 August 2022
The Bank of England (BoE) set interest rates, in part to keep inflation to its target level of 2%, and today the Bank Rate was increased to 1.75%. a Jump of 0.5 percentage points.
This rise marks the highest it has been since 2009. The Monetary Policy Committee (MPC) voted eight votes to one to change the current bank rate. The one member who voted against this change preferred and increase of 0.25 percentage points, to 1.5%. The next date this is set to be reviewed is 15 September 2022.
With rising energy bills and petrol prices remaining high, inflation is expected to remain high. Some experts are forecasting a rate of 15% by the start of 2023, well above the rates targeted by the MPC.
Back to contents
cipp.org.uk
Page 137 of 238
Made with FlippingBook - Online magazine maker