Submission (FPS), from April 2022 onwards. From April 2022, the relief can be claimed in real time, as a payroll solution will be possible by that point. The reaction to this was that it seemed too complex, and that an existing NI category that provides employer NI relief in much the same way should be utilised, or even a new category set up, so that employers have access to the entitlement in line with the date that the policy is first implemented.
Some other key points raised included:
• Over 80% of survey respondents agreed that a consistent definition of armed forces applied by Government should be used for this policy, with 80% also in agreement that reservists should not be included as veterans for the purposes of an employer NI contributions holiday • There was unanimous agreement (100%) that amending the PAYE Starter Checklist to accommodate questions around this relief would not deter employers from employing veterans and claiming the relief • The majority (64%) of those who completed the survey felt that this new entitlement would not incentivise employers to take on more, or their first, veteran(s). From comments, it is apparent that businesses will employ veterans based on their skill set and experience, as opposed to an employer relief
Read the CIPP’s consultation response in full here.
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Chancellor confirms increases to Income Tax Personal Allowance and Higher Rate thresholds, and NI limits and thresholds for 2021-22 26 November 2020 Within the Spending Review accompanying documents, it has been confirmed that both the Income Tax Personal Allowance and Higher Rate Threshold will increase in line with the Consumer Price Index (CPI) figure for September 2020. This figure will also be used as the basis for determining what the National Insurance (NI) limits and thresholds, and the rates of class 2 & 3 NI contributions will be for tax year 2021-22.
The CPI figure for September 2020 was 0.5% but we await to see what the official thresholds and limits will be, to be laid out by the Government.
This information is welcomed as speculation was rife that there would be no increase to tax and NI thresholds, and also to the NLW and NMW rates, but it has been confirmed that they will also increase for pay reference periods that start on or after 1 April 2020.
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HMRC publishes response to consultation: Supporting veterans’ transition into civilian life through employment 12 January 2021
HMRC has published its response to the consultation that sought views on a National Insurance contributions (NICs) holiday for veterans, that was announced at Spring Budget 2020.
The consultation ran from 21 July 2020 to 5 October 2020, and 37 written responses were received. The document confirms the Government response and a summary of responses to the questions that were posed.
The next steps are also outlined, and the Government has published draft clauses alongside the consultation response, which are subject to technical consultation until 8 March 2021. The key points for payroll professionals to be aware of are that the relief will be available from 6 April 2021, and that the Government will legislate for this. As predicted and outlined in the original consultation, employers will only be able to claim the relief in real time through PAYE in the tax year following the year that the policy comes into effect (2022-23). Therefore, for the first tax year
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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