`The Chartered Institute of Payroll Professionals
News On Line
HM Revenue and Customs (HMRC) has released a research report and a corporate report regarding the off-payroll working reforms for the private and voluntary sector.
Short-term effects of the 2021 off-payroll working rules reform for private and voluntary sector organisations Impacts of the 2021 off-payroll working rules reform in the private and voluntary sectors
The short-term effects report, conducted by IFF Research, explores:
changes to workforce structures
•
• personal service company (PSC) engagements • costs to businesses • administration of the reforms • overseas workers.
This data driven piece has some in depth analysis and some interesting results. There is less change in some areas, such as how workers are engaged, that may have been anticipated.
The impacts report, produced by HMRC, dives into:
• changes to the way workers provided their services • additional tax revenue generated • costs incurred in relation to the reform • education and support provided by HMRC
Of note are estimates that businesses across the UK have incurred a on-off cost of between £90 million and £230 million to prepare and implement the reforms. In the first year a further £150 million to £370 million was spent operating the reforms, but this is likely to reduce over time as businesses adapt and improve processes.
An estimated £1.8 billion has been raised in tax revenue for the Exchequer. This makes the proposed abolishment of the reforms from the growth plan, now U-turned, confusing from a Treasury perspective.
Not mentioned within the report are planned updates to the Check Employment Status for Tax (CEST) tool, however, the treasury minutes report has highlighted this previously. The tools will be migrated to a new system to give HMRC “ faster and more comprehensive control of its content ”.
Back to contents
First Freeports now up and running Published: 21 December 2022 Emailed: 4 January 2023
The UK’s first freeports in Plymouth, Solent and Teesside have received the final government sign off on Wednesday 7 December 2022 and are now fully operating.
Each of these freeports will receive up to £25 million in seed funding from Government to improve local infrastructure and encourage development. It is important as payroll professionals to ensure that we and our systems are calculating the correct amount of employer national insurance contribution (NIC) for freeports and the accurate national insurance (NI) category letters are used. You can check if you are eligible for NI relief here.
Levelling up minister Dehenna Davison said:
‘‘Now they are up and running, these Freeports will harness local expertise to grow vital industries and turbocharge our national economy.’’
‘‘Freeports will generate prosperity and spread opportunity throughout the UK by driving innovation and throwing open our doors to trade with the world.’’
Additionally, Ben Murray, Maritime UK chief executive, said:
‘‘From marine autonomy to defence, advanced manufacturing to decarbonisation, these freeports will help strengthen our maritime clusters and grow our maritime sector; already one of Britain’s biggest industries. We look forward to continuing to work with government to harness the potential of maritime to accelerate levelling- up.’’
cipp.org.uk
Page 85 of 238
Made with FlippingBook - Online magazine maker