PAYROLL INSIGHT
Government will legislate to provide HMRC and customers earlier certainty on individual matters in large, high-risk and complex tax enquiries. Tax avoidance ● Disguised remuneration schemes (DRS) – Budget 2016 announced changes to tackle use of DRS by employers and employees. The Government will now extend the scope of these changes to ensure that self-employed users of such schemes pay their fair share of tax and NICs. The Government will also take steps to make it less attractive for employers to use them, by denying tax relief for employer contributions to them unless tax and NI are paid within a specified period. ● Sanctions and deterrents – As signalled at Budget 2016, to provide a strong deterrent to those enabling tax avoidance the Government will introduce a new penalty for any person who has enabled another person or business to use a tax avoidance arrangement that is later defeated by HMRC. This new regime will reflect extensive consultation and input from stakeholders with details being published in draft legislation shortly. The
for clients holding money offshore to notify HMRC of the structures and the related client lists. ● Hidden economy – The Government will legislate to extend HMRC’s data- gathering powers to money service businesses in order to identify those operating in the hidden economy. Following consultation, the Government will consider the case for making access to licences or services for businesses conditional on them being registered for tax. It will also develop proposals to strengthen sanctions for those who repeatedly and deliberately participate in the hidden economy. Budget 2017 will set out further details. n Further information ● The CIPP’s policy team published a summary of the Autumn Statement on 23 November here: http://bit.ly/2i1wLhc. It includes other general areas of interest that were announced, such as the fuel duty remaining frozen for the seventh successive year. ● The full Autumn Statement and associated documents are available at http://bit.ly/2h8KEWy.
Government will also remove the defence of having relied on non-independent advice as taking ‘reasonable care’ when considering penalties for any person or business that uses such arrangements. ● Counter avoidance – The Government is investing further in HMRC to increase its activity on countering avoidance and taking cases forward for litigation, which is expected to bring forward over £450 million in revenue by 2021–22. Tax evasion and compliance ● Insolvency risks – HMRC will develop its ability to identify emerging insolvency risk, using external analytical expertise. HMRC will use this information to tailor its debt collection activity, improve customer service and provide support to struggling businesses. ● Past failures – The Government will introduce a new legal requirement to correct a past failure to pay UK tax on offshore interests within a defined period of time, with new sanctions for those who fail to do so. ● Offshore structures – The Government will consult on a new legal requirement for intermediaries arranging complex structures
Counts towards CPD
This focused course represents the single best opportunity to be briefed and updated on changes affecting payroll. One day duration Payroll and HR legislation update Training course
This informative one day course covers: l Income tax and National Insurance l Real time information l Statutory payments and leave l Expenses and benefits l Pensions reform l Changes to employment rights l Plus much more
For full details or to book your place, please visit cipp.org.uk , email admin@cipp.org.uk or call 0121 712 1063 .
cipp.org.uk
| Professional in Payroll, Pensions and Reward | February 2017 | Issue 27 22
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