`The Chartered Institute of Payroll Professionals
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Published: 14 February 2023 Emailed: 15 February 2023
HM Revenue and Customs (HMRC) has now updated the GOV.UK guidance on the tax years pension scheme members can carry forward an annual allowance.
An annual allowance is the maximum that an individual can save in their pension pots in a tax year (6 April to 5 April) before they have to pay tax. If the members savings go above the annual allowance, a need to pay an annual allowance tax charge may apply. However members may be able increase their annual allowance by carrying forward any unused annual allowance from previous years. An updated list of the tax years can be found here. Payroll professionals should remember that there is also a cap on the amount of any unused annual allowance that can be carried forward from the pre- alignment tax year, depending on the individual’s circumstances for that ‘mini’ tax year. You can read more detailed guidance on carry forward rules in the pension tax manual.
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Apprenticeships bursary for care leavers
Published: 14 February 2023 Emailed: 15 February 2023
The Government announced an increase in bursary for care leavers undertaking apprenticeships to £3,000. The bursary is for eligible apprentices who are in care or who are care leavers.
The bursary is paid by the Education and Skills Funding Agency (ESFA) to the apprenticeship training provider, once the apprentice has been on the apprenticeship for at least 60 days. The bursary is separate to the additional funding that employers and training providers can receive to support care leaver apprentices. For apprentices who start their apprenticeships up to and including 31 July 2023, the bursary is a single payment of £1,000 (this payment can only be received once by an individual care leaver). For apprentices starting their apprenticeship on or after 1 August 2023, the bursary will be £3,000 (it ’ s payable in instalments over the first year of the apprenticeship).
The Government has stated:
‘‘It will help remove financial barriers to accessing and completing apprenticeships’’.
Detailed guidance on this topic and eligibility can be found here.
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Consumer Price Inflation (CPI) rate update
Published: 15 February 2023 Emailed: 22 February 2023
The UK inflation rate has dropped to 10.1%, according to the Office for National Statistics (ONS). The rate at which prices are rising has dropped slightly, but inflation remains close to an all-time high.
CPI is the rate at which the prices of goods and services bought by households rise or fall. It is estimated by using price indices. The ONS keeps track of prices, in a ‘’shopping basket’’ of around 700 popular goods and services bought by households. This is reviewed every year, so that the index is representative and to up to date. The CPI rose by 10.1% in the 12 months to January 2023, down from 10.5% in December 2022. On a monthly basis, CPI fell by 0.6% in January 2023, compared with a fall of 0.1% in January 2022. According to data released by the ONS today, the largest downward impact to the change in CPI annual inflation rates between December 2022 and
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