Payroll insight
6 April 2020 — Draft Finance Bill legislation, which is expected to be published in summer 2019 — IR35 off-payrolling in the private sector Individuals providing their services through an intermediary or employers contracting for services via an intermediary must be aware of the forthcoming changes. Guidance can be found at: http://bit. ly/2ZRih6X. HMRC are advising employers to start preparing now for the changes which will impact large- and medium-size businesses.
pay with effect from 6 April 2019. At least 3% must come from the employer with the employee making up the difference between the employer’s contribution and the minimum 8% requirement. 6 April 2019 — The Wales Act 2014, The Devolved Income Tax Rates (Consequential Amendments) Order 2018 — Welsh income tax Introduction of the Welsh rate of income tax which for the 2019/20 tax year remains the same rate as for the rest of the UK. 6 April 2019 — The Education (Postgraduate Master’s Degree Loans) Regulations 2016 — Postgraduate loans Introduction of postgraduate loans brought a new rate and threshold. An individual with either a plan 1 or 2 student loan and a postgraduate loan will repay both concurrently. 6 April 2019 — Finance Bill 2018-19 to amend Section 289A of the Income Tax (Earnings and Pensions) Act 2003 — Benchmark subsistence rates Removes the requirement for employers to keep receipts and any other form of documentary evidence to check amounts spent by employees when using the HMRC benchmark scale rates to pay or reimburse their qualifying subsistence expenses. The measure also enabled HMRC to bring the concessionary exemption for overseas scale rates into legislation. No requirement for employers to keep receipts and any other form of documentary evidence to check amounts spent by employees when reimbursing expenses using the overseas scale rates. Employers will need to ensure that employees are undertaking qualifying travel on the occasions in respect of which a payment is made or reimbursed free of tax. 6 April 2019 — Autumn Budget 2018 — Apprenticeship levy The transfer allowance increased to 25%. The percentage that non-levy-paying employers must contribute towards the cost of apprenticeship training decreased from 10% to 5%.
£100,000 in the previous tax year. To claim the EA the employer must have space for the full amount (currently £3,000) within their relevant de minimis state aid threshold. HMRC has published a technical consultation which closed on 20 August 2019. Regulations and guidance expected in October 2019. The CIPP policy team will be publishing a survey to gather the views of payroll professionals and others with a vested interest, and also plan to hold a policy think-tank roundtable which will be open to full, fellow and chartered members – to express your interest please email policy@cipp.org.uk . 6 April 2020 — Legislation to be introduced —NICs on termination payments in excess of £30,000 At Budget 2018 it was confirmed that class 1A NICs (employer only) will be payable on any part of a termination award that is liable to income tax. HMRC advice is that as employers already pay income tax on these payments the process for paying NICs will be broadly similar. What this means in practice is still to be confirmed. April 2020 — Parental Bereavement (Leave and Pay) Act 2018 — Parental bereavement leave and pay Employed parents and primary carers will be entitled to at least two weeks’ statutory parental bereavement leave and pay from April 2020 where they suffer the loss of a child and meet the qualifying conditions. The Act will provide a day-one right for those who suffer the loss of a child under the age of 18 or where a stillbirth is suffered from 24 weeks of pregnancy. Full guidance is yet to be published. n It is highly likely that by the time you have read this article – along with any other new announcements there have been – you will (as always) be considering the impact on your workplace, what the risks are, what changes need to be made to ensure the organisation remains compliant, who you have to liaise with, and who you need to influence to ensure any required changes happen. Good luck.
...you will (as always ) be considering the impact on your workplace...
6 April 2020 — The Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018 —Written statement of main terms It will become a day-one right at the latest for a worker increases to receive a statement of initial employment particulars. 6 April 2020 — Chief Constable of Northern Ireland v Agnew— Holiday pay reference period The current twelve working weeks’ pay reference period used to calculate the average holiday pay/entitlement for a worker increases to 52 working weeks over a maximum 104-week period. However, the outcome of this recent case could have repercussions for employers elsewhere in the UK. The Northern Ireland court ruled that the relevant ‘reference period’ was the number of days the worker had actually worked in the previous year. 6 April 2020 — Regulations will be made under National Insurance Contributions Act 2014 — Employment allowance (EA) The EA is to be restricted to those organisations with a NICs bill below
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| Professional in Payroll, Pensions and Reward |
Issue 53 | September 2019
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