HOT TOPIC
Tax incentives for occupational health (OH) consultation HM Treasury and HMRC have released a joint consultation into tax incentives for OH offerings. This consultation is aimed at employers and explores the role of tax incentives in boosting OH provision. The consultation asks for opinions on: l current benefit in kind exemptions for OH services l proposals on what to include if expanding benefit in kind exemptions for OH services (however, no monetary limit is suggested) l ways to encourage smaller organisations to provide OH services. Non-statutory flexible working CfE The DBT has published this CfE, which seeks views from individuals and businesses regarding their experiences of non-statutory flexible working, and how it operates in practice. Employees can ask for flexible working through the statutory right to request, or they can take an informal non-statutory route – for example, a discussion with their manager. Informal flexible working can benefit individuals and businesses alike, so DBT wishes to understand how it works in more detail. The CfE is split into three sections: l the first section focusses on ‘ad hoc’ arrangements, to include questions on how and why individuals use this type of workplace flexibility, along with any barriers to take-up. This section also contains questions for employers on the reasons as to why they provide this type of flexibility l the second section looks at ‘regular’ arrangements, and includes questions on what arrangements employers offer and the basis on which they’re agreed l the third section considers organisational approaches to non-statutory flexible working (which may be set out in a contract or could be less formal), and includes questions on policies, supporting managers and monitoring / evaluation. Any responses will help to develop the government’s evidence base on non-statutory flexible working and inform the flexible working strategy moving forwards. n Like we said, it’s been busy! You can find all the policy team’s consultation and CfE formal responses here: https://ow.ly/KnYi50Pzh1E.
l clear guidance must be provided to clarify the rules which have historically been provided via case law, e.g., the ability to roll leave over to a new annual leave year l alternatives to the 52-week method of calculating ‘normal holiday pay’ should be considered. One method suggested was to align the calculation of ‘normal holiday pay’ with the calculation used to determine average weekly pay for the most common statutory parental payments l easy to understand guidance is needed so employers can determine which workers they can pay rolled-up holiday pay to l only part-year and irregular hour workers should receive rolled-up holiday pay. Tackling non-compliance in the umbrella company market consultation This consultation looks at non-compliance currently occurring in the umbrella company market and suggests ways to prevent it. However, first umbrella companies must be defined, as they presently have no legal definition which makes it difficult to legislate for them. Two options are proposed – a definition or a series of tests. Then three different options for tackling umbrella company fraud are put forward: l mandating due diligence l transferring tax debt to others in the supply chain l stopping umbrella companies from handling gross funds. Additionally, the government is proposing to limit the ways in which companies can claim the employment allowance, to combat mini-umbrella company fraud. They seek to restrict the employment allowance to companies with a UK-based director. This is a massive simplification of the consultation, as it’s 52 questions and 54 pages long. With much nuance and detail, this could be a long process, as much is yet to be decided and many of the options aren’t yet fully formed. Ending the proliferation of deferred small pension pots consultation Simply put, a small pot is a pension plan worth £10,000 or less. The problem addressed within this consultation is that,
although automatic enrolment has helped millions to save for their retirement, people can still change jobs frequently. This means they may forget about the pot(s) of money they’ve built up with their previous employer(s), and the amount they’ve saved can be eroded by administrative charges / fees imposed by the previous pension provider(s). This consultation explores the option of addressing the problem by adopting a default multiple consolidator approach and invites respondents to comment on how this could work in practice, to ensure there aren’t any unintended consequences of the government’s proposed approach. Labour market enforcement strategy 2024 to 2025 CfE This CfE confirms the issues which Margaret Beels, the director of labour market enforcement (DLME) seeks evidence on to inform her strategy for 2024/25. The document seeks evidence and views regarding emerging trends and risks to labour market non-compliance. The role of DLME was created in 2017 to bring together a coherent assessment of the extent of labour market exploitation, identifying routes to tackle exploitation and harnessing the strength of the three main enforcement bodies: l HMRC NMW l the Gangmasters and Labour Abuse Authority l the Employment Agency Standards Inspectorate. The labour market enforcement strategy for 2024/25 is due to be delivered to the government in autumn 2023. To inform the strategy’s content, this CfE aims to: l gain a better understanding of the non- compliance threat l improve the focus and effectiveness of the compliance / enforcement work of the three bodies under remit l encourage more joined-up thinking to minimise the opportunities for exploitation of gaps in employment protection l improve engagement with employers and support for workers. There’s also consideration of the single enforcement body (which was due to be established to bring together the three enforcement bodies mentioned above), as there’s been a lack of progress on its creation.
If you have any feedback you’d like to provide on any of the above, then please do get in touch with us at policy@cipp.org.uk . Use your voice!
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| Professional in Payroll, Pensions and Reward |
Issue 93 | September 2023
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