`The Chartered Institute of Payroll Professionals
News On Line
Emailed: 16 November 2022
As with any budget or fiscal statement rumours and speculation grow in the days beforehand. The CIPP has noticed these too and wanted to explore what these could mean for the payroll profession. On 17 November 2022, we’ll be pushing out updates throughout the day as we get access to the information delivered by chancellor, Jeremy Hunt. Keep an eye on our news page to get all the latest updates. Changes to tax rates With the additional rate on income tax being dropped and reinstated in the space of a month, it ’s now rumoured to be increased back up to 50%. This would set it back to the rate last seen in tax year 2012/13. Changes to income tax rates are relatively easy to implement, when sufficient notice is given, but may come with additional queries and concerns from those affected. Changes to tax band thresholds It’s also been rumoured the additional rate tax threshold will reduce to to £125,000, bringing more taxpayers into this band. The impact remains the same but will dramatically increase the number of affected individuals. Pensions tax relief A sensitive subject with potential to raise substantial revenue for the Exchequer, but unpalatable to many, is the topic of pensions and the associated tax relief. The total relief available of up to 100% of a work er’s annual earnings may be reduced. Another potential target is the pensions lifetime allowance, reducing the amount of pension that can be invested before taxes become payable. The impact of these changes is hard to assess without additional detail, whic h of course we don’t have yet, as, at this stage, this is all still hearsay. State pension The state pension triple lock has been widely discussed and suggested as an area for change. The triple lock guarantees that state pension payments rise in line with the highest of average earnings, consumer price inflation or 2.5%. This was suspended last year, and a double lock implemented, amid soaring inflation. May another similar year or a total revision be on the cards?
Whatever happens on 17 November 2022, the CIPP will be here to keep you informed and up to date with the facts.
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Key information document guidance published for agency workers Published: 17 November 2022 Emailed: 23 November 2022
The Office for National Statistics (ONS) has released the inflation figures for October 2022. These figures break down The Department for Business, Energy and Industrial Strategy (BEIS) has produced guidance on the key information document (KID) for agency workers.
Since April 2020, employment businesses, such as umbrella companies, are required to issue a KID to new temporary workers who are engaged by them. The document lays out the relationship and:
who will pay the employee
• • • •
how often can they expect to be paid
holiday entitlement additional benefits.
The new guidance page explains who needs a KID and what it must include for different scenarios.
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Autumn statement tax changes Published: 17 November 2022 Emailed: 23 November 2022
cipp.org.uk
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