`The Chartered Institute of Payroll Professionals
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can be or have been attributed on any just and reasonable basis to salary foregone by employees in periods starting on or after 6 April 2017
• where repayment claims (including overpayment relief claims and PAYE adjustments) were made between 15 October 2019 and 1 December 2022 inclusive to the extent that these claims related to sick pay payments made to employees or former employees and are, or are derived from, amounts that can be attributed on any just or reasonable basis to salary foregone by employees in periods starting on or after 6 April 2017 • sick pay payments made on or after 1 January 2024 will be accepted as non-taxable to the extent that they are made or are derived from amounts that can be attributed on any just or reasonable basis to salary foregone by employees between 15 October 2019 and 31 December 2023.
An alternative arrangement would be if a payment is made to such a scheme using net pay, there would be different rules:
“ If the employee makes contributions out of their taxed income and separate from any salary sacrifice arrangement these contributions will be counted as ‘B’ ‘Employee Contributions’ in the calculation at EIM06430 to the extent that they have funded sick pay subsequently received. ”
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New legislation aimed at tax repayment agents to be introduced Published: 11 January 2023 Emailed: 11 January 2023
Following the consultation “ Raising standards in tax advice: protecting customers claiming tax repayments ” HM Revenue and Customs (HMRC) has confirmed new legislation will be created.
In an accompanying press release HMRC confirms that new legislation will seek to make l egally binding ‘assignments’ invalid. An ‘assignment’ is an agreement where a taxpayer give permission for a repayment agent to receive a tax refund directly from HMRC. This may be cancelled only if both parties agree to do so, creating issues when an individual is unhappy with the service they are receiving and wishes to take over management of their account.
The alternative arrangement if for the taxpayer to make a ‘nomination’, this can be cancelled at any point by the individual, giving them greater control.
Assignments made before the new legislation take effect will still be legally binding, but any made after the date will be invalid.
HMRC is also announcing the following measures:
• updated standards for agents – applicable to all tax agents and include greater transparency requirements
• a new HMRC registration process for repayment agents – to make the agent sector more transparent so customers better understand what they are signing up to
Included in the updated standards for agents is:
• greater evidence of customer consent - this aims to ensure that taxpayers better understand the agreement they’re entering into
• stricter transparency rules, including introducing a 14- day ‘cooling off’ period for customers after entering into an arrangement with an agent, and an obligation on agents to ensure all communications and advertising material are fair, clear, accurate and do not mislead or conceal material facts.
The CIPP responded to the initial consultation, which can be read by members on our consultation responses page in our policy hub.
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