The measure has been designed to encourage individuals to return to positions that will help the government response to coronavirus, whilst ensuring that there is no adverse tax impact on their pension. This will mean that public services are protected at this crucial time, and the temporary rules will initially apply in respect of payments made in the period from 1 March 2020 to 1 June 20202. The time limit will be monitored and kept under review, HMRC will provide detailed guidance on this matter, but the measure will only be applicable to those returning to work due to the coronavirus outbreak, particularly for workforces such as the police. This is not a general lifting of the restrictions, and only applies to certain individuals.
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The Statutory Sick Pay Rebate Scheme and state aid 27 April 2020
Guidance relating to the Statutory Sick Pay (SSP) Rebate Scheme has been updated to reflect the fact that claim amounts under the scheme should not exceed €800,000.
Employers are informed that their claim amount must not exceed the maximum €800,000 of state aid under the EU Commission temporary framework. This is when combined with any other aid received under the framework. Agriculture has a lower maximum of €100,000, and the limit for aquaculture and fisheries is €120,000. The European Commission approved a £50 billion “umbrella” UK scheme to support small and medium-sized enterprises (SMEs) and large corporates in the UK affected by the outbreak of coronavirus. More information can be found here. Payroll professionals will be familiar with state aid due to recent changes to the Employment Allowance. Only employers with a secondary Class 1 National Insurance contributions (NICs) bill of less than £100,000 in the previous tax year are eligible for the Employment Allowance as of 6 April 2020, and this means that it is reclassified as de minimis state aid.
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The Treasury announces updates to tax policy consulation and calls for evidence as a result of COVID-19 30 April 2020
The Treasury announces updates to tax policy consultations and calls for evidence as a result of COVID-19
A Written Ministerial Statement has been released by HM Treasury, which gives an update on current tax policy consultations and calls for evidence, and confirms that the closing dates for some have been extended due to coronavirus.
The HMRC Charter Consultation will now close on 15 August 2020, and the Call for evidence on raising standards in the tax market will close on 28 August 2020.
The extensions have been implemented because the government recognises that many stakeholders are experiencing significant disruption as a result of COVID-19. The additional time will ensure that more stakeholders have the opportunity to respond and share their views. Most of the eleven tax policy consultations and calls for evidence announced at Budget 2020 have been extended for a duration of three months. Despite the change to closing dates, the government is continuing to encourage stakeholders to respond as soon as they can, where possible.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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