COMPLIANCE
Tax administration and maintenance day
Samantha Johnson LLB(Hons) ChMCIPPdip, CIPP policy lead summarises key announcements made on 30 November for payrollers to be aware of
T he number of acronyms in payroll continues to grow, and on 30 November 2021, we were introduced to Tax Administration and Maintenance Day, or TAMD for short. In March 2021, the first ever UK Tax Day was held, which involved the release of several consultations and calls for evidence from the UK government. TAMD, bearing the less succinct title, was the second instance of consultations being released en masse and included some key government consultation responses too. What was the impact of TAMDon the payroll profession? In June 2021, the CIPP responded to the consultation, Raising standards in the tax advice market , which considered introducing mandatory professional indemnity insurance (PII) to those providing tax advice. The consultation explored a definition of tax advice, and whether outsourced payroll, software providers or employers providing advice on employee benefits could fall within this definition. The CIPP response concluded payroll professionals were most likely to engage in providing information and guidance as part of their role. There are some payroll professionals, however, that will engage in tax advice. There was recognition there is often a fine line between advice and guidance, as some payrollers are asked by clients or employees to provide information outside the responsibilities of their role. On TAMD, the government response confirmed mandatory PII would not be introduced for tax advisers. Instead, the government will consult in early 2022 to determine a concrete definition of tax advice, before it imposes measures on those who provide it. The CIPP welcomed
standards in tax advice. The CIPP continues to encourage payroll professionals to be mindful of the remit of their role and feel empowered to push back when being asked to engage in advice where it is not appropriate to do so. The government response confirmed that mandatory PII would not be introduced for tax advisers The government also released a response to the call for evidence on the tax administration framework. This had the aim of delivering a system fit for the twenty first century. This may seem a somewhat peculiar aim, given we’re over one fifth of the way through that century! However, in line with its ten-year tax administration strategy to build a trusted and modern tax administration system, the government confirmed it will consider how to best ‘develop, prioritise and sequence’ next steps. Her Majesty’s Revenue and Customs (HMRC) will also be developing a roadmap for future consultation and analysis on this ten-year vision. Interestingly, the government confirms that, following the review by the Office of Tax Simplification in Summer 2021, it has no plans to explore changing the tax year end date at the present time. New calls for evidence The negative press umbrella companies have received since the implementation of off-payroll working has been unavoidable, and the government is keen to explore
these concerns. A call for evidence on the umbrella company market invites views on how these companies interact with both the tax and employment rights systems. This means it is a joint venture between HMRC, HM Treasury and the department for Business, Energy and Industrial Strategy. The CIPP is keen to hear from members who wish to share their views on this subject, and encourages you to contact policy@cipp.org.uk to ensure the payroll voice is represented. HMRC is also looking for input on modernising tax debt collection from non- paying businesses. Professional magazine recently featured an article from HMRC, covering the steps it is taking to support businesses in managing debt: http:// ow.ly/2egC30s4IRH. The call for evidence is seeking views on how HMRC can reflect the changing nature of the economy in its debt collection activities. New consultations The impact of the McCloud judgement continues to ripple across the public sector, and this was seen during TAMD. The consultation on teachers’ pension schemes (TPS) identifies that changes to TPS rules are needed to address age discrimination, identified in the McCloud case. While this case may have been of little consequence to payroll professionals in the private sector, those in the public sector continue to deal with its effects. The policy team takes a deeper dive into this case on page 32. The future of TAMD HMRC and the government continue to explore the future of a more digital and fit- for-purpose tax administration system. The profession can be certain that changes can, and will, be implemented which will impact payroll, and the CIPP will continue to keep you up to date. n
this response, as research confirmed mandatory PII alone would not raise
| Professional in Payroll, Pensions and Reward | February 2022 | Issue 77 12
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