renewal of benefit years in January also adds significantly to the December workload. Thank you to all members who responded to this quick poll, if you have a challenge that isn't already covered please let us know by email to policy@cipp.org.uk.
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New CIPP Quick Poll: Do businesses support employees through the longer pay period in January? 22 September 2020 As more and more emphasis is placed on financial wellbeing, and with businesses being encouraged to provide their staff with financial support and to provide financial education, the CIPP’s Policy and research team wanted to ask if organisations have put anything in place to support their staff through the long month of January. The team have posted a new Quick Poll, which asks the question: “As January is a long month due to most businesses offering an earlier pay date in December, what do you do to assist employees?”. The poll will take less than a minute to respond to, and we would like to thank you in advance, as always, for your feedback. It is a common practice for organisations to pay their staff earlier in December, so that they receive a wage ahead of Christmas day. Whilst this is widely appreciated, it does mean that there is a longer period between the December pay date and the January pay date, and it is commonly accepted that January can be a long month for employees, and that some struggle financially as a result of this.
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Final Reminder – CIPP Survey – The Net Pay Anomaly: Call for evidence on pensions tax relief administration 24 September 2020 There’s still time for you to respond to the survey that the CIPP’s Policy and Research team have published, in order to collate the views of members and incorporate them into our formal response to the net pay anomaly: call for evidence on pensions tax relief administration. The survey focuses on the issue that arises for individuals who earn above £10,000, so over the auto-enrolment threshold, but below the current basic tax threshold of £12,500. In a net pay arrangement pension scheme, they will have a full pension deduction taken from their pay, without receiving any tax benefit on this contribution as they have not earned enough for tax to be applied to their earnings. If an individual is in a relief at source arrangement, however, they would only have 80% of the contribution deducted from their net pay, which would subsequently be topped up with 20% from HMRC, meaning that they would enjoy the benefit of tax relief. The government is concerned about the possible impact of this on a low-earning individual’s take-home pay, based on the method of pensions tax relief that is operated by the pension scheme that they are enrolled in. Intentions for the government to look into this were made clear in the Conservative manifesto 2019, which stated: “A number of workers, disproportionately women, who earn between £10,000 and £12,500 have been missing out on pension benefits because of a loophole affecting people with net pay pension schemes. We will conduct a comprehensive review to look at how to fix this issue.” The call for evidence aims to discuss improvements that can be made to the methods of administering pensions tax relief. Within the survey, we ask for your feedback on the government’s proposed methods of fixing the pensions anomaly issue. This is an important topic for payroll and pension professionals to have their say on, so although we understand you are all very busy, we would really appreciate any time you can dedicate to respond to the survey. It should take approximately 20 minutes to complete, and the survey will be open until 30 September 2020.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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