Traditionally, documents and consultations would normally be published alongside the Budget, which is due to be unveiled on 3 March 2021. This year, however, things will be slightly different, as HM Treasury has confirmed that it won’t release some of these items until later on in the month, on 23 March 2021. This approach has been taken to allow for more transparency and scrutiny according to a recent news story, and will give tax professionals a better opportunity to provide feedback on consultations and policy discussions, which in turn, will strengthen policy-making.
It has been confirmed that none of the announcements will require legislation in the next Finance Bill, nor will they have an effect on the government’s finances.
At this point, it has been revealed that a number of the consultations will form part of the government’s ten-year tax administration strategy, which has the ultimate aim of reorganising the tax system so that it is suitable for the challenges and opportunities posed by the 21 st century.
Jesse Norman, Financial Secretary to the Treasury, commented:
“We are making these announcements separately to the Budget, but still all on a single day, in order to give a range of important but less high profile measures greater visibility among Members of Parliament, tax professionals and other stakeholders, and greater scope for scrutiny by them.” Any announcements which do impact the government’s finances or are required to be recorded in the Office for Budget Responsibility’s (OBR) economic and fiscal outlook will be included on Budget day in the traditional way. This also extends to measures that will need to be legislated for in the Finance Bill.
CIPP comment
The CIPP regularly responds to consultations and calls for evidence that relate to policies that will impact the work of payroll professionals. Keep your eyes peeled for invites to surveys and to virtual roundtable meetings to have your say and input into the consultation responses that the CIPP sends out to various government departments, and to ultimately impact payroll policies of the future.
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The CIPP’s Budget summary for 2021 has landed 4 March 2021
The CIPP has produced its Budget summary for 2021, which includes all the key elements for payroll professionals to be aware of for the upcoming tax year, and beyond.
Read on to explore how the Government will continue to support both businesses and individuals through the prolonged economic turbulence posed by coronavirus, as extensions to the Coronavirus Job Retention Scheme (CJRS) and Self-Employment Income Support Scheme (SEISS) were confirmed.
The Budget summary also explores the measures that will be implemented to incentivise employers to take on younger staff, and similarly, encourage younger people to get into work.
The summary includes information relating to all the usual information you would expect to see within a Budget update, including confirmation of tax rates and thresholds, the National Living Wage (NLW) and National Minimum Wage (NMW) rates, information relating to pensions taxation, and company cars, vans and fuel. Additionally, there is discussion of National Insurance (NI) limits and thresholds, and a reminder of new employer National Insurance Contributions (NICs) reliefs that businesses should be aware of.
The Budget summary is your one-stop shop for everything payroll related, and we thoroughly encourage you to read it in full.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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