CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

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The Department for Education has announced that starting salaries for teachers will be rising by at least £2000 a year from this September. This coincides with another announcement from the Department of Health and Social Care, that salaries will be increasing for over a million NHS staff by at least £1400 a year, backdated to April 2022.

The reforms for teachers are based on recommendations from the independent School Teachers' Review Body. Those in the first five years of their careers will see an increase of 5% to 8.9%. The Education Secretary James Cleverly said:

"We are delivering significant pay increases for all teachers despite the present economic challenges, pushing teacher starting salaries up towards the £30,000 milestone and giving experienced teachers the biggest pay rise in a generation. This will attract even more top-quality talent to inspire children and young people and reward teachers for their hard work."

Coinciding with this announcement, is the government's acceptance of the NHS Pay Review Body recommendations to apply a salary increase of a minimum of £1400 to over a million NHS staff. The Department of Health and Social Care have announced that:

"Over one million NHS staff – including nurses, paramedics and midwives – to get a pay rise of at least £1,400 with lowest earners to receive up to 9.3%. Eligible dentists and doctors will receive a 4.5% pay rise."

"Alongside this, all eligible nursing, midwifery and allied health professional students will benefit from a training grant worth at least £5,000 a year, with up to £3,000 extra available for childcare and those studying certain specialisms."

With current inflation levels at a 40-year high and the cost of living crisis, it is hoped that these announcements will bring some relief to some of the most important workers in the country.

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OTS scoping note for upcoming call for evidence into hybrid and remote working

Published: 29 July 2022 Emailed: 3 August 2022

The Office of Tax Simplification (OTS) has released a scoping note detailing areas of interest for an upcoming Call for Evidence.

The request will centre on hybrid and distance working, and related trends emerging in the UK labour market. OTS will look for high-level evidence on hybrid and remote working, if it is likely to increase in popularity, trends involving working overseas and any tax complexities involved in these areas.

The policy paper identifies the scope of the review as:

• be a high-level evidential review of the extent to which hybrid and distance working is likely to increase, whether this trend involves more overseas working, and whether the changes in working practices give rise to any new problems or challenges for employer and employee compliance • bring together relevant research in this area to present a view of the trends • conduct research to understand how employers and their policies and procedures are changing • consider employees normally based in the UK spending time working overseas and overseas employees spending time working in the UK. This includes considering at what the point the UK could/should consider taxing those individuals • identify ways in which developments in remote working may make complying with the tax system more complicated, and potential considerations for government in policy and operational terms • identify opportunities these changes may offer to reconsider existing features of the tax system to make things simpler both for those directly affected and more widely • focus on income tax, national insurance and corporation tax • look at the perspectives of employers and employees • consider the trends in self-employed hybrid workers.

Specifically, the review will consider the tax impacts of:

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