`The Chartered Institute of Payroll Professionals
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In the latest consumer price inflation report from the Office for National Statistics (ONS) it is confirmed the Consumer Price Index (CPI) has now reached 10.1%.
Driven by rising food prices, the CPI figure is higher than it has been since CPI was used in the national statistics series, but models suggest it would last have been higher 40 years ago.
The Bank of England is tasked with keeping inflation to a targeted 2%. To achieve this, interest rates are set, currently at 1.75%, due to be reviewed on 15 September 2022. It is likely that further increases to the bank rate will need to be considered as inflation continues to climb. The repayment interest rate Her Majesty’s Revenue and Customs (HMRC) set is determined by the bank rate minus 1%, with a lower limit of 0.5%. This lower limit has now been breached, therefore any further rises will also affect HMRC’s repayment interest rates.
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A reminder of changes to right to work checks from 1 October 2022 Published: 28 September 2022 Emailed: 28 September 2022 Due to the impacts of the pandemic, the Home Office allowed employers to conduct remote right to work checks when hiring workers, from March 2020. This meant that instead of having to meet job applicants, employers could do this using a video call.
There have been numerous extensions to this method of performing right to work checks, but this method will no longer be allowed after 30 September 2022.
From 1 October, checks will need to be conducted in one of these ways:
• an in-person manual check, using original documents • through the Home Office’s online checking service • via an identification document validation technology (IDVT) identity check.
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19 September 2022 to be bank holiday Published: 12 September 2022 Emailed: 14 September 2022
It has been announced that 19 September 2022 will be a bank holiday to mark the funeral of Queen Elizabeth II. There are some important considerations to make for payroll professionals when an additional bank holiday is added to the year. This year also saw the additional bank holiday for the platinum Jubilee, bringing the total number of bank holidays up to ten. Annual leave Many employees will be wondering if they are entitled to the day off and if it is included in their annual leave entitlement. This will depend on the wording of the relevant agreement; this is usually the contract of employment but may be an employee handbook or similar. Wording such as “20 days plus bank holidays” would encompass the additional days as the number of bank holidays is not specified. “28 days, inclusive of bank holidays” would therefore not encompass the additional days. Going above and beyond is a decision for each individual business. HM Revenue and Customs (HMRC) has released guidance for the mourning period for businesses to follow. The Department for Business, Energy and Industrial Strategy’s press release concerning the bank holiday stated “they expect employers to respond sensitively to requests” for time off. Employer Payment Summary (EPS) filing Businesses must also consider the impact on HMRC reporting timelines. As of yet, no alternative arrangements for EPS filing requirements have been confirmed. We must therefore prepare to ensure these are completed by the last working day before 19 September, this will be 16 September 2022.
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