Policy News Journal - 2013-14

Policy News Journal

2013-14

Produced by the CIPP policy and research team

Introduction

This Policy News Journal has been produced by the CIPP Policy and Research team for the exclusive benefit of members. The Journal contains all relevant payroll News On Line items and is indexed and categorised for easy reference. Each item is in date order (the most recent entry being at the bottom) to ensure you know you have the latest updates on any given subject. The Journal is produced on a tax year basis and by the end of each tax year will be closed off and restarted with any significant live news items being carried forward to the following year’s edition and then added to on a weekly basis with each edition of News On Line.

Using the index is easy – find your topic of interest and CTRL + click will take you straight there.

If you have any comments or suggestions about the Journal, please email policy@cipp.org.uk

CIPP Policy News Journal

16/04/2014, Page 2 of 519

Index

Apprenticeships................................................................................................. 21 CIPP SURVEY - FUNDING REFORM FOR APPRENTICESHIPS IN ENGLAND............. 21 CIPP response to funding reform for apprenticeships in England ..................................... 21 ICAEW response to funding reform for apprenticeships.................................................... 22 Apprenticeship reforms in England driven by Trailblazers................................................. 22 National Apprenticeships Week ........................................................................................ 23 Guidance: Future of apprenticeships in England: guidance for trailblazers ....................... 23 Apprenticeship funding reform in England: payment mechanisms and funding principles . 24 Apprenticeship funding reform – technical consultation survey ......................................... 25 Attachment of Earnings .................................................................................... 25 CONTACTING THE CENTRALISED ATTACHMENT OF EARNINGS PAYMENT SYSTEM (CAPS) HELPLINE............................................................................................ 25 Direct Earnings Attachments............................................................................................. 25 NEW POWERS TO RECOVER DEBTS OWED TO DWP ................................................ 25 DIRECT EARNINGS ATTACHMENT – UPDATE TO THE EMPLOYER’S GUIDE............ 27 Direct Earning Attachments .............................................................................................. 27 DWP Publish V4 of Employer Guide to Direct Earnings Attachments ............................... 27 Revised guidance for dealing with Direct Earnings Attachments....................................... 27 CIPP survey on readiness to action Direct Earnings Attachments .................................... 28 Autumn Statement.............................................................................................................. 28 Chancellor to deliver Autumn Statement on 4 December 2013......................................... 28 Chancellor to make his annual Autumn Statement on 5 December .................................. 29 Autumn Statement December 2013.................................................................................. 29 Bad news buried in a one liner – Apprenticeships......................................................... 30 Personal Allowance, Rates of Tax, National Insurance Contributions for 2014/15 ........ 30 OTS report on simplifying the tax system in respect of employee benefits and expenses ...................................................................................................................... 31 Employee Ownership benefits ...................................................................................... 31 Recognising marriage in the tax system........................................................................ 31 No more paper road tax discs ....................................................................................... 31 Abolition of NICs for under 21s ..................................................................................... 31 State Pension age ........................................................................................................ 32 Class 3A voluntary National Insurance ......................................................................... 32 Tax avoidance measures .............................................................................................. 33 Offshore employment intermediaries ............................................................................ 33 Tax evasion and illicit trade........................................................................................... 34 Fraud, error and debt in the tax and benefits systems................................................... 34 Other items of interest................................................................................................... 34 Better Regulation............................................................................................... 36 BOOST FOR BUSINESS AS RED TAPE CUT FROM 6 APRIL........................................ 36 GROWING YOUR BUSINESS - A REPORT ON GROWING MICRO BUSINESSES ....... 37 MAJOR PROJECTS DATA............................................................................................... 38 Consultation on company filing requirements.................................................................... 39 Admin Burdens Advisory Board publishes its annual report to the XST ............................ 39 The Office of Tax Simplification ........................................................................................ 39 THE OTS LOOKS AT EMPLOYEE BENEFITS AND EXPENSES .................................... 39 EMPLOYEE BENEFITS AND EXPENSES COMMITTEE MINUTES – 17 JUNE 2013 ..... 40 OTS INTERIM REPORT ON EMPLOYEE BENEFITS AND EXPENSES ......................... 40 The CIPP and the AAT joint survey on the OTS interim report on benefits in kind ............ 41 CIPP and AAT joint response to the OTS employee benefits and expenses interim report ................................................................................................................................ 42 OTS review of employee benefits and expenses – second report..................................... 42 OTS review of employee benefits and expenses – second report..................................... 43 Budget 2013 ....................................................................................................... 44 Employment Allowance for businesses............................................................................. 44 Company Car Tax ............................................................................................................ 45

CIPP Policy News Journal

16/04/2014, Page 3 of 519

New Childcare Scheme from 2015 ................................................................................... 45 Income Tax Personal Allowance....................................................................................... 45 Exemption threshold for employer provided beneficial loans............................................. 45 Collection of debts through PAYE tax codes..................................................................... 45 Pension Tax Relief............................................................................................................ 45 Individual tax relief protection ........................................................................................... 46 Income Tax/NI treatment for employee shareholders........................................................ 46 Self-employed NICs simplification consultation................................................................. 46 Confirmation of small business tax simplification .............................................................. 46 Corporation Tax reduction ................................................................................................ 46 THE QUEEN’S SPEECH 2013 – WHAT IMPACT FOR PAYROLL?................................. 46 Budget 2014 ....................................................................................................... 48 CIPP Budget 2014 Summary............................................................................................ 48 Spending Review............................................................................................... 52 SPENDING REVIEW ANNOUNCES THE END OF THE AUTOMATIC PAY INCREASE . 52 THE SPENDING REVIEW IN MORE DETAIL .................................................................. 52 Child Maintenance Reform ............................................................................... 53 CHILD MAINTENANCE REFORM – INITIAL GOVERNMENT CONSULTATION RESPONSE...................................................................................................................... 53 CHILD MAINTENANCE SCHEME ROLLOUT PROGRESSES......................................... 53 New ‘business banking’ service for child maintenance to benefit 40,000 employers ......... 53 CIPP Policy & Research – informal consultation ........................................... 54 OUTCOME OF RECENT CIPP SURVEYS....................................................................... 54 THE CIPP LAUNCHES ITS ANNUAL PAYROLL SURVEY FINDINGS ............................ 56 CIPP Payslip statistic survey 2013/14............................................................................... 57 The changing landscape of Payroll ................................................................................... 57 Citizen News....................................................................................................... 58 UK Border Agency.............................................................................................................. 58 ALL CHANGE AT THE UK BORDER AGENCY ............................................................... 58 PREVENTING ILLEGAL WORKING – CHECK ONLINE .................................................. 59 MINOR CHANGES TO THE IMMIGRATION RULES COME INTO FORCE ON 1 JULY 2013 ................................................................................................................................. 59 Home Office Consultation: Strengthening and simplifying the civil penalty scheme to prevent illegal working ...................................................................................................... 59 Passport returns pilot launched for applicants reapplying for tier 2 intra-company transfer visas .................................................................................................................... 60 Changes to the Immigration Rules from 1 October 2013 .................................................. 60 Pilot launched to help SMEs recruit skilled international employees ................................. 61 Immigration Bill in the House of Commons ....................................................................... 62 Full guide for employers on preventing illegal working in the UK ...................................... 63 Home Office consultation on immigration and visa charging principles ............................. 63 Immigration Rule changes - Armed Forces....................................................................... 63 UK Border Agency: Changes to document requirements .................................................. 64 Construction Industry ....................................................................................... 65 CONSTRUCTION INDUSTRY SCHEME - RECORD OF AMOUNTS SET OFF............... 65 HMRC UPDATES LEAFLET ON CIS REPAYMENTS ...................................................... 65 TOP TEN TIPS FOR CLAIMING A CIS REPAYMENT ..................................................... 65 CIPP survey: Construction Industry Scheme (CIS) returns – paper or online?.................. 66 SFO's sector-based compliance drive to focus on construction industry ........................... 66 Construction Industry Training Board (CITB) Levy deductions .......................................... 67 Digital by Default ............................................................................................... 67 THE DEPARTMENT FOR EDUCATION MAKING GOV.UK HOME ................................. 67 NUMBER 10 COMPLETES THE SET! ............................................................................. 68 HMRC SECURE £200 MILLION OF GOVERNMENT INVESTMENT TO ENABLE TAXPAYERS TO TAKE CONTROL.................................................................................. 68 Withdrawal of HMRC E booklets – CIPP solution ............................................................. 69 HMRC website’s transition to GOV.UK ............................................................................. 70 HMRC website’s transition to GOV.UK ............................................................................. 70

CIPP Policy News Journal

16/04/2014, Page 4 of 519

CIPP webcast on HMRC transition to GOV.UK................................................................. 71 Employment Law & Guidance .......................................................................... 71 Flexible Working................................................................................................................. 71 ACAS LAUNCH CONSULTATION ON FLEXIBLE WORKING CODE OF PRACTICE...... 71 COMMITTEE CALLS ON GOVERNMENT TO TACKLE WORKPLACE INEQUALITY ..... 72 ARE YOU HAPPY TO TALK FLEXIBLE WORKING? ....................................................... 72 Flexible working and the Right to Request for all .............................................................. 73 Children and Families Act 2014 approved by Parliament .................................................. 74 General Employment Law News........................................................................................ 74 REDUNDANCY – FACT SHEET FOR EMPLOYEES ....................................................... 75 EMPLOYER OBLIGATIONS – PERCEPTION IS WORSE THAN REALITY? ................... 75 INCORPORATION OF COLLECTIVE AGREEMENT ....................................................... 76 FEE-PAID JUDGES - PENSIONS .................................................................................... 76 ACAS PUBLISHES NEW GUIDANCE ON DEALING WITH COLLECTIVE REDUNDANCIES............................................................................................................. 77 TAKING ON YOUR FIRST EMPLOYEE? ......................................................................... 77 GOVERNMENT CONSULTATION ON EQUAL PAY AUDITS .......................................... 78 DISCLOSURE AND BARRING SERVICE TO BE UPDATED........................................... 78 NATIONAL PAY SYSTEM FOR COLLEGES.................................................................... 78 REVISED CODE OF PRACTICE ON SETTLEMENT AGREEMENTS PUBLISHED......... 79 EXECUTIVE PAY REGULATIONS................................................................................... 79 LATEST EMPLOYMENT LAW REFORM ANNOUNCEMENTS........................................ 80 DRIVE TO GET MORE DISABLED PEOPLE INTO MAINSTREAM JOBS ....................... 80 BIS - APPRENTICESHIPS FUNDING REFORM IN ENGLAND ....................................... 80 EMPLOYMENT TRIBUNAL FEES INTRODUCED TODAY .............................................. 81 EMPLOYMENT TRIBUNAL FEES COULD BE 'LOOKED AT AGAIN' .............................. 81 ACAS PUBLISH NEW GUIDANCE ON SETTLEMENT AGREEMENTS .......................... 82 AMENDMENT MADE TO LIMIT ON COMPENSATARY AWARD FOR UNFAIR DISMISSAL ...................................................................................................................... 82 ACAS HELPLINE ONLINE ............................................................................................... 83 SUBJECT ACCESS CODE OF PRACTICE PUBLISHED BY ICO.................................... 83 MISCALCULATION OF HOLIDAY PAY LEADS TO INCREASE IN PENSION LIABILITIES...................................................................................................................... 83 CLOUD STORAGE DATA TO BE AUTOMATICALLY ENCRYPTED BY GOOGLE.......... 84 Fee Remission in Courts and Tribunals ............................................................................ 84 Agency workers still not receiving equal pay according to TUC research.......................... 85 The TUC want government to make pay audits compulsory ............................................. 86 Enforcement of Employment Tribunal Awards .................................................................. 87 The Equality and Human Rights Commission tackles pregnancy discrimination ............... 88 Whistleblowing Commission publishes report ................................................................... 88 Acas launches consultation on Discipline and Grievance Code ........................................ 89 Marriage for Same Sex Couples ....................................................................................... 90 Acas Early Conciliation - A free new service launches in April .......................................... 90 Employment Tribunal Statistics......................................................................................... 91 Disclosure and Barring: Reforms to rehabilitation periods for offenders ............................ 92 TUPE (Transfer of Undertakings (Protection of Employment)) ....................................... 93 Changes to TUPE regulations likely to come into force in January 2014........................... 93 Government publish response to TUPE consultation ........................................................ 93 Employment law and legislation changes coming in to force on 1 October 2013 .............. 94 Draft Transfer of Undertakings (Protection of Employment) Regulations (TUPE) 2006 ..... 95 New TUPE Regulations implementation date ................................................................... 95 Guidance on TUPE Employment Rights published ........................................................... 95 Revised TUPE rules come into force ................................................................................ 97 Acas guidance on TUPE changes .................................................................................... 97 Zero hours contracts.......................................................................................................... 98 ZERO-HOUR CONTRACTS TO BE REVIEWED ............................................................. 98 ZERO HOURS CONTRACTS FOUR TIMES HIGHER THAN ESTIMATES...................... 99 CAN AN INDIVIDUAL WORKING UNDER A ZERO HOURS CONTRACT BE AN EMPLOYEE?.................................................................................................................... 99

CIPP Policy News Journal

16/04/2014, Page 5 of 519

The ONS to survey businesses on zero-hours contracts ................................................ 100 Labour pledges to ban zero hours contracts ................................................................... 100 Zero hours employment contracts: consultation.............................................................. 101 CIPP survey on the government’s zero hours consultation ............................................. 101 CIPP response to zero hours contracts........................................................................... 102 Employment Tribunals .................................................................................... 102 UNLAWFUL DEDUCTIONS CLAIM AND PENSION CONTRIBUTIONS ........................ 102 TERMINATION PAYMENTS AND THE PENALTY CLAUSE.......................................... 103 TUPE CONSULTATION BY INSOLVENT COMPANIES ................................................ 103 SUPREME COURT: METHODIST MINISTER IS NOT AN EMPLOYEE......................... 104 STRIKING OUT TRIBUNAL CLAIMS ............................................................................. 104 REDUNDANCY AND PARENTAL LEAVE...................................................................... 105 THE SUPREME COURT RULES ON THE MEANING OF ‘IN THE SAME EMPLOYMENT’.............................................................................................................. 105 LANDMARK EAT JUDGMENT DRAMATICALLY CHANGES PROCESS FOR CROSS- SITE REDUNDANCIES .................................................................................................. 106 CARRYING OVER OF ADDITIONAL HOLIDAY LEAVE WHILST ON SICK LEAVE....... 107 ALEMO-HERRON V PARKWOOD LEISURE LTD ......................................................... 107 SETTLEMENT DOES NOT REQUIRE FORMAL CONTRACT ....................................... 108 DEATH IN SERVICE BENEFIT PAYABLE EVEN THOUGH EMPLOYEE DISMISSED.. 108 CALCULATING HOLIDAY PAY ENTITLEMENT ............................................................ 109 CONFIDENTIAL INFORMATION – LIABILITY OF NEW EMPLOYER............................ 110 REPRESENTATION AT DISCIPLINARY HEARINGS .................................................... 111 Volunteer worker at commercial company still qualifies for National Minimum Wage...... 111 TUPE: Service Provision Changeover ............................................................................ 112 Does a finding of gross misconduct make dismissal automatically fair?.......................... 113 CJEU – Maternity and Paternity Leave ........................................................................... 114 Redundancy and suitable alternative employment .......................................................... 114 Calculation of week's pay for compensatory award......................................................... 115 Is an intended mother in a surrogacy arrangement entitled to maternity leave?.............. 115 Permanent health insurance benefits and age discrimination ......................................... 116 TUPE: service provision changeover .............................................................................. 116 Reasonable adjustments and paying for medical treatment ............................................ 117 Employment Status......................................................................................................... 117 Constructive Dismissal: The Correct Test ....................................................................... 118 Unfair Dismissal: Redundancy and reorganisation.......................................................... 118 Court rules against employee who poached fellow employees for a competitor company119 Employee bonuses: avoidance scheme involving Restricted Securities.......................... 119 Surrogacy and maternity leave entitlement: UK say yes - Ireland say no ........................ 119 Disability discrimination - reasonable adjustments.......................................................... 120 Courts decide when employees on short time working should get guarantee payments . 121 Reasonable adjustments can include private psychiatric counselling.............................. 122 Extension of Time - Unfair Dismissal .............................................................................. 123 Repayment Clause: Unenforceable Penalty?.................................................................. 123 National minimum wage for sleepovers .......................................................................... 124 TUPE liability .................................................................................................................. 124 Court finds HMRC entitled to tax under dispute where taxpayer left it to HMRC to calculate the tax.............................................................................................................. 125 Employment status when providing services through a limited company ........................ 126 Dismissal: Telling the Employee ..................................................................................... 127 Unfair Dismissal: Ill-Health Absence ............................................................................... 127 First Tier Tribunal Judges loans to be income from employment .................................... 128 CJEU ruling: Holiday pay must include commission........................................................ 128 Disability Discrimination: Knowledge of Disability ........................................................... 129 Employment Status: Workers ......................................................................................... 129 Discrimination: Dismissal after end of maternity period................................................... 130 European court ruling: Receiving surrogate mother not entitled to maternity leave ......... 130 Equal Pay ....................................................................................................................... 131 Implied Terms and Redundancy Payments .................................................................... 131

CIPP Policy News Journal

16/04/2014, Page 6 of 519

Expenses and Benefits ................................................................................... 132 Advisory Fuel Rates ......................................................................................................... 132 ADVISORY FUEL RATES AS FROM 1 MARCH 2013 ................................................... 132 ADVISORY FUEL RATES AS FROM 1 JUNE 2013 ....................................................... 133 Advisory Fuel Rates for Company Cars from 1 September 2013 .................................... 134 Advisory Fuel Rates for Company Cars from 1 December 2013 ..................................... 134 Advisory Fuel Rates for Company Cars from 1 March 2014 ........................................... 135 Company Cars .................................................................................................................. 135 COMPANY CAR AND CAR FUEL BENEFIT CALCULATOR UPDATED........................ 135 Company car and van fuel benefit for 2014/15................................................................ 136 HMRC Company car and car fuel benefit calculator........................................................ 136 General Expenses & Benefits News................................................................................ 137 LIST 3 UPDATED........................................................................................................... 137 HMRC – NEW EXPENSES AND BENEFITS ONLINE FORMS ...................................... 137 2012-13 FORMS P11D(B) AND PAYSLIPS – RTI PILOT EMPLOYERS TAKE TIMELY ACTION.......................................................................................................................... 138 EMPLOYER SUPPORTED LOCAL BUS SERVICES ..................................................... 138 CORRECTION TO CWG2 EMPLOYER FURTHER GUIDE TO PAYE & NIC (2013)...... 138 CIPP SURVEY WORLDWIDE SUBSISTENCE RATES (WWSR) REVIEW.................... 138 SUBMITTING PAPER P11DS AND S336 CLAIMS......................................................... 139 EXPENSES AND BENEFITS ONLINE DELAY............................................................... 139 CONSULTATION ON THE IMPLEMENTATION OF A TAX EXEMPTION FOR EMPLOYER EXPENDITURE ON HEALTH-RELATED INTERVENTIONS ..................... 140 HMRC EXPENSES & BENEFITS ONLINE SERVICE .................................................... 140 HMRC EXPENSES & BENEFITS ONLINE SERVICE - UPDATE ................................... 141 HMRC UPDATE FOR RTI PILOT EMPLOYERS ABOUT P11D(B) REMINDERS .......... 141 EXPENSES AND BENEFITS ONLINE SERVICE UNAVAILABILITY.............................. 141 PENALTIES ARISING FROM THE DELAYED LAUNCH OF THE EXPENSES AND BENEFITS ONLINE SERVICE ....................................................................................... 141 CIPP SURVEY – TAX RELIEF FOR EMPLOYER EXPENDITURE ON HEALTH- RELATED INTERVENTIONS ......................................................................................... 142 CIPP RESPONSE TO HM TREASURY CONSULTATION ON TAX EXEMPTIONS FOR MEDICAL EXPENDITURE ............................................................................................. 143 UPDATED LIST 3........................................................................................................... 143 A REMINDER ABOUT THE NEW ONLINE END OF YEAR EXPENSES AND BENEFITS SERVICE ..................................................................................................... 143 HMRC CLARIFY RTI REPORTING GUIDANCE FOR PAYE SCHEMES ONLY OPEN TO ENABLE EMPLOYERS TO SEND IN FORMS P11D................................................ 144 The CIPP and the AAT joint survey on the OTS interim report on benefits in kind .......... 144 CIPP and AAT joint response to the OTS employee benefits and expenses interim report .............................................................................................................................. 145 Mayor of London proposing salary sacrifice season tickets to assist commuters ............ 145 OTS progress report on ‘Quick Wins’ from employee benefits and expenses review ...... 146 Tax exemptions for medical expenditure......................................................................... 147 List 3 updated ................................................................................................................. 147 OTS review of employee benefits and expenses – second report................................... 148 Notifying HMRC if you payroll benefits............................................................................ 149 Beneficial loan arrangements - official rate of interest for 2014-15.................................. 149 No more paper receipt hoarding for UK business ........................................................... 149 Car lease to be treated in the same way as company car ............................................... 151 List 3 updated ................................................................................................................. 151 Overnight subsistence allowances paid to lorry drivers................................................... 152 Tax-Free Childcare ........................................................................................................... 152 HMT ANNOUNCES TAX FREE CHILDCARE FOR 2.5. MILLION WORKING FAMILIES152 TAX FREE CHILDCARE CONSULTATION PUBLISHED ............................................... 153 CIPP survey: Tax-free Childcare - consultation on design and operation........................ 153 Tax-Free Childcare consultation – short survey .............................................................. 154 CIPP survey response: Tax-Free Childcare - consultation on design and operation ....... 154 Tax-Free Childcare – consultation outcome.................................................................... 156

CIPP Policy News Journal

16/04/2014, Page 7 of 519

HMRC ................................................................................................................ 157 General HMRC News ........................................................................................................ 157 HMRC SINGLE BANK ACCOUNT FROM APRIL 2013 .................................................. 158 NO LONGER SELF EMPLOYED? DON’T FORGET TO TELL HMRC ........................... 158 ESC CONCESSION A19 REVIEW - SUMMARY OF RESPONSES ............................... 158 HMRC INCREASING TAX YIELD FROM THE UK WEALTHIEST.................................. 159 DEAR HMRC I AM WRITING THIS LETTER TODAY BECAUSE… ............................... 159 PAYE TAX CALCULATIONS FOR 2012/2013................................................................ 160 HMRC PUBLISH PERFORMANCE RECORD FOR 2012-13 ......................................... 161 DO YOUR CLIENTS KNOW TO USE THE CORRECT REFERENCES? ....................... 161 HMRC CONSULT ON COMMUNITY AMATEUR SPORTS CLUBS (CASC) .................. 161 HMRC TO HOLD CASC CONSULTATION MEETINGS ................................................. 162 CIPP SURVEY - HMRC PDF BOOKLETS, DO WE STILL NEED THEM?...................... 162 SIGNING UP FOR EMAIL SUPPORT FROM HMRC ..................................................... 162 PUBLICATION OF HMRC'S ANNUAL REPORT AND ACCOUNTS 2012-13, AND THE TAX ASSURANCE COMMISSIONER'S ANNUAL REPORT .......................................... 162 HMRC PUBLISH RESPONSES TO CONSULTATION ON HOW TO HELP THOSE WHO NEED EXTRA HELP............................................................................................. 163 HMRC OFFER FREE WEBINARS FOR EMPLOYERS .................................................. 163 New safeguards for debt collection visits ........................................................................ 163 Tax rebate scam results in five arrests............................................................................ 164 HMRC’s April to June 2013 performance........................................................................ 165 HMRC can now access businesses card payment information ....................................... 165 HMRC’s Your Charter..................................................................................................... 166 HMRC briefing on High Income Child Benefit Charge..................................................... 166 HMRC targeting health professionals in new tax campaign ............................................ 167 2011 to 2012 tax gap figures published .......................................................................... 167 An opportunity for you to help HMRC shape the design of a new online service for small and medium businesses ................................................................................................. 168 HMRC supporting ‘Get Safe Online Week’ ..................................................................... 169 Limits on Income Tax reliefs - Guidance ......................................................................... 169 HMRC’s new Intelligent Telephony Automation (ITA) ..................................................... 169 HMRC Intelligent Telephony Automation (ITA) ............................................................... 170 HMRC's 2013-14 half-yearly performance ...................................................................... 171 HMRC Annual Report and Accounts 2012/13 ................................................................. 171 High income Child Benefit parents urged to register for Self Assessment ....................... 172 HMRC to open revolutionary new Digital Centre............................................................. 173 HMRC report shows call handling below 90 per cent target ............................................ 173 What to do if you cannot pay HMRC............................................................................... 174 Email scams: Employer Annual Return and Alerts & Registrations ................................. 174 HMRC piloting improved digital services......................................................................... 175 HMRC tax helpline launched to support people affected by flooding............................... 176 A new approach to supporting HMRC customers who need extra help........................... 176 The Chartered Institute of Payroll Professionals supports HMRC in reaching the unrepresented employers ............................................................................................... 177 Publishing details of deliberate defaulters....................................................................... 177 HMRC comes out of the office to support customers who need extra help ..................... 177 Small businesses urged to cash in with simpler accounting ............................................ 178 HMRC website outage.................................................................................................... 179 Update on Joint Initiative on HMRC Service Delivery...................................................... 179 Stakeholder weekly updates............................................................................................ 181 HMRC STAKEHOLDER UPDATE – NUMBER 13 .......................................................... 181 HMRC STAKEHOLDER UPDATE – NUMBER 14 .......................................................... 182 HMRC STAKEHOLDER UPDATE – NUMBER 15 .......................................................... 182 HMRC STAKEHOLDER UPDATE – NUMBER 16 .......................................................... 183 HMRC STAKEHOLDER UPDATE – NUMBER 17 .......................................................... 185 HMRC STAKEHOLDER UPDATE – NUMBER 18 .......................................................... 185 HMRC STAKEHOLDER UPDATE - NUMBER 19........................................................... 186 HMRC STAKEHOLDER UPDATE - NUMBER 20........................................................... 187

CIPP Policy News Journal

16/04/2014, Page 8 of 519

HMRC STAKEHOLDER UPDATE - NUMBER 21.......................................................... 188 HMRC STAKEHOLDER UPDATE - NUMBER 22........................................................... 188 HMRC STAKEHOLDER UPDATE - NUMBER 23.......................................................... 189 HMRC STAKEHOLDER UPDATE - NUMBER 24.......................................................... 190 HMRC STAKEHOLDER UPDATE - NUMBER 25.......................................................... 190 HMRC STAKEHOLDER UPDATE - NUMBER 26........................................................... 192 HMRC STAKEHOLDER UPDATE - NUMBER 27........................................................... 192 HMRC STAKEHOLDER UPDATE – NUMBER 28 .......................................................... 193 HMRC STAKEHOLDER UPDATE - NUMBER 29........................................................... 194 HMRC STAKEHOLDER UPDATE - NUMBER 30........................................................... 194 HMRC STAKEHOLDER UPDATE - NUMBER 31........................................................... 195 HMRC STAKEHOLDER UPDATE - NUMBER 32........................................................... 196 HMRC stakeholder update – number 33......................................................................... 196 HMRC stakeholder update - number 34.......................................................................... 197 HMRC stakeholder update - number 36.......................................................................... 199 HMRC stakeholder update - number 37.......................................................................... 200 HMRC stakeholder update - number 38.......................................................................... 200 HMRC stakeholder update - number 39.......................................................................... 201 HMRC stakeholder update - number 40.......................................................................... 202 HMRC stakeholder update - number 41.......................................................................... 202 HMRC stakeholder update - number 42.......................................................................... 203 HMRC stakeholder update - number 43.......................................................................... 204 HMRC stakeholder update - number 45.......................................................................... 205 HMRC stakeholder update - number 46.......................................................................... 206 HMRC stakeholder update - number 47.......................................................................... 206 HMRC stakeholder update - number 48.......................................................................... 207 HMRC stakeholder update - number 49.......................................................................... 208 HMRC stakeholder update - number 1............................................................................ 210 HMRC stakeholder update - number 2............................................................................ 210 HMRC stakeholder update - number 3............................................................................ 211 HMRC stakeholder update - number 4............................................................................ 213 HMRC stakeholder update - number 5............................................................................ 213 HMRC stakeholder update - number 6............................................................................ 214 HMRC stakeholder update - number 7............................................................................ 215 HMRC stakeholder update - number 8............................................................................ 216 HMRC stakeholder update - number 9............................................................................ 216 HMRC stakeholder update - number 10.......................................................................... 217 HMRC stakeholder update - number 11.......................................................................... 217 HMRC stakeholder update - number 12.......................................................................... 218 HMRC stakeholder update - number 13.......................................................................... 219 HMRC stakeholder update - number 14.......................................................................... 220 Modern Workplaces Consultation ................................................................. 221 Equal Pay .......................................................................................................................... 222 CIPP SURVEY - FURTHER CONSULTATION ON EQUAL PAY AUDITS...................... 222 CIPP RESPONSE TO THE FURTHER CONSULTATION ON EQUAL PAY AUDITS..... 222 Parental Leave .................................................................................................................. 222 MODERN WORKPLACES: FLEXIBLE PARENTAL LEAVE AND FLEXIBLE WORKING222 ADMINISTRATION OF FLEXIBLE PARENTAL LEAVE – CONSULTATION .................. 224 PARENTAL LEAVE EXTENDS FROM 13 TO 18 WEEKS.............................................. 224 CIPP RESPONSE TO CONSULTATION ON SHARED PARENTAL LEAVE .................. 225 ADDITIONAL PATERNITY LEAVE TAKEN UP BY LESS THAN 1 PER CENT .............. 225 SHARED PARENTAL LEAVE – CAN YOU HELP? ........................................................ 225 Consultation response on the administration of shared parental leave ........................... 226 Children and Families Act 2014 approved by Parliament ................................................ 229 Money Laundering Regulations ..................................................................... 229 CHANGES TO MONEY LAUNDERING REGULATIONS COME INTO FORCE ON 1 OCTOBER...................................................................................................................... 229 HMRC TO CONTACT BUSINESSES REGISTERED UNDER THE MONEY LAUNDERING REGULATIONS...................................................................................... 230

CIPP Policy News Journal

16/04/2014, Page 9 of 519

CHANGE TO GUIDANCE ON PENALTIES UNDER HMRC MONEY LAUNDERING SUPERVISION – REVISED GUIDANCE TO FOLLOW .................................................. 230 National Insurance........................................................................................... 231 Employment Allowance ................................................................................................... 231 The National Insurance Contributions (NICs) Employment Allowance ............................ 231 Employment Allowance guidance published ................................................................... 231 Employment Allowance should be extended to domestic employers .............................. 231 Employment Allowance calculator .................................................................................. 232 The National Insurance Contributions (NICs) Employment Allowance ............................ 233 Employment Allowance: further guidance on connected companies and eligibility.......... 234 National Insurance Contributions (NICs) Employment Allowance ................................... 234 General National Insurance News ................................................................................... 234 IMPORTANT INFORMATION FOR SLEEPING AND INACTIVE LIMITED PARTNERS ABOUT THEIR LIABILITY TO PAY CLASS 2 AND 4 NATIONAL INSURANCE CONTRIBUTIONS. ......................................................................................................... 234 NATIONAL INSURANCE NUMBERS WITHOUT SUFFIXES ......................................... 235 NATIONAL INSURANCE NUMBER VERIFICATION REQUESTS (NVR) RESUMES .... 236 NATIONAL INSURANCE AND SELF-EMPLOYED ENTERTAINERS – OPEN CONSULTATION ........................................................................................................... 236 DRAFT NATIONAL INSURANCE CONTRIBUTIONS BILL............................................. 236 CONSULTATION ON SIMPLIFYING NATIONAL INSURANCE PROCESS FOR SELF- EMPLOYED.................................................................................................................... 237 Treatment of class 2 NICs recovered through the PAYE tax code: draft amended regulations...................................................................................................................... 237 Entertainers and Class 1 National Insurance Contributions ............................................ 238 National Insurance Thresholds ....................................................................................... 238 National Insurance guidance for software developers, effective for the tax year 2014- 15 ............................................................................................................................... 239 Draft legislation National Insurance Contributions Rates, Limits and Thresholds 2014/15239 Class 3A Voluntary National Insurance........................................................................... 240 Withdrawal of CA6855 National Insurance Number Tracing Service............................... 241 Age exception certificates CA4140 ................................................................................. 241 Delay in publication of National Insurance tables 2014/15 .............................................. 241 Class 3A Voluntary National Insurance contributions...................................................... 242 Regional Employer NICs Holiday .................................................................................... 242 REGIONAL EMPLOYER NICs HOLIDAY FOR NEW BUSINESSES.............................. 242 End of the Regional Employer NICs Holiday for New Businesses scheme ..................... 243 National Minimum Wage (NMW)..................................................................... 243 LOW PAY COMMISSION (LPC) TRIENNIAL REVIEW: MARCH 2013........................... 243 GOVERNMENT ACCEPTS LOW PAY COMMISSION’S RECOMMENDATIONS FOR THIS YEAR’S ADULT AND YOUTH NATIONAL MINIMUM WAGE RATES ................... 244 NOT PAYING THE NATIONAL MINIMUM WAGE DOESN’T PAY.................................. 244 CIPP SURVEY – NATIONAL MINIMUM WAGE 2014 .................................................... 245 NATIONAL MINIMUM WAGE RATES FROM 1 OCTOBER 2013................................... 245 NATIONAL MINIMUM WAGE ROGUES TO BE PUBLICLY NAMED AND SHAMED..... 246 National Minimum Wage poster ...................................................................................... 246 CIPP feed in to Low Pay Commission report on the National Minimum Wage ................ 247 NMW policy on HMRC enforcement and naming and shaming employers ..................... 248 The UK and London Living Wage rates have increased ................................................. 248 TUC say government must increase minimum wage by more than the rate of inflation... 248 Guidance on calculating the National Minimum Wage .................................................... 249 National Minimum Wage increase survey ....................................................................... 249 National Minimum Wage penalties to increase to £20,000 from February 2014.............. 249 Briefing Note - National Minimum Wage ......................................................................... 250 Low Pay Commission recommends new National Minimum Wage rates ........................ 251 Government gets tough with employers failing to pay National Minimum Wage.............. 252 The government approves National Minimum Wage rise to £6.50 per hour .................... 253 Pay As You Earn .............................................................................................. 254 Basic PAYE Tools (BPT) .................................................................................................. 254

CIPP Policy News Journal

16/04/2014, Page 10 of 519

ERROR MESSAGES WITH BASIC PAYE TOOLS......................................................... 254 TAX YEAR END SUBMISSION 2012/13 V REAL TIME SUBMISSIONS 2013/14 .......... 254 PILOT EMPLOYER USING BPT FOR EYU - SUPPLEMENTARY UPDATE: APRIL 2013 ............................................................................................................................... 254 BASIC PAYE TOOLS EXPERIENCING PROBLEMS SUBMITTING PAYE INFORMATION IN REAL TIME ...................................................................................... 255 COMPLETING P11DS FOR 2012-13 USING BASIC PAYE TOOLS (BPT) .................... 255 BASIC PAYE TOOLS TO SUBMIT AN EARLIER YEAR UPDATE NOW AVAILABLE.... 256 BASIC PAYE TOOLS (BPT) UPDATED ......................................................................... 256 Coding Out Debt ............................................................................................................... 256 Consultation – How to improve HMRC’S collection of debt: Coding out .......................... 256 CIPP survey - HMRC’S proposals for coding out debt .................................................... 256 CIPP response to consultation ‘How to improve HMRC’s collection of debt: coding out’. 257 Government response to ‘How to improve HMRC’s collection of debt: coding out’.......... 257 Employee Share Schemes ............................................................................................... 258 EMPLOYMENT-RELATED SHARES & SECURITIES BULLETIN – NUMBER 7 ............ 258 EMPLOYMENT-RELATED SHARES & SECURITIES BULLETIN – NUMBER 8 ............ 258 CONSULTATION: OFFICE OF TAX SIMPLIFICATION: REVIEW OF UNAPPROVED SHARE SCHEMES......................................................................................................... 259 HMRC SHARES AND ASSETS VALUATION FISCAL FORUM...................................... 259 EMPLOYMENT-RELATED SHARES & SECURITIES BULLETIN – NUMBER 9 ............ 259 Employment-related shares & securities bulletin – number 10........................................ 260 Employment-related shares & securities bulletin – number 11........................................ 260 Employment-related shares & securities bulletin – number 12........................................ 260 Annual Return Forms for approved and unapproved share schemes ............................. 260 Share schemes – annual returns .................................................................................... 261 Employment Related Securities - administration changes .............................................. 261 Employment related securities forum minutes of December 2013................................... 261 Employment-related shares & securities bulletin – number 13........................................ 261 Save As You Earn (SAYE) employee share option schemes.......................................... 262 Employment Related Securities - administration changes .............................................. 262 Employment Related Securities online service ............................................................... 263 Save As You Earn savings arrangements - Increase in monthly savings limit................. 263 Employment-related shares & securities bulletin – number 15........................................ 264 Employee Ownership ....................................................................................................... 264 ‘SHARES FOR RIGHTS’ REJECTED BY HOUSE OF LORDS ...................................... 264 EMPLOYMENT RIGHT V SHARES – HOUSE OF COMMONS VOTE IN EMPLOYEE SHAREHOLDERS .......................................................................................................... 265 EMPLOYEE SHAREHOLDER STATUS – THE VOTING CONTINUES.......................... 265 THE ENTERPRISE AND REGULATORY REFORM BILL RECEIVES ROYAL ASSENT 266 GOVERNMENT CONTINUE TO COMMIT TO EMPLOYEE OWNERSHIP .................... 266 GOVERNMENT TO PROVIDE TWO NEW TAX RELIEFS TO ENCOURAGE EMPLOYEE OWNERSHIP ............................................................................................. 267 DEPARTMENT FOR BUSINESS, INNOVATION & SKILLS PRODUCES GUIDANCE ON EMPLOYEE OWNED COMPANIES......................................................................... 267 EMPLOYEE SHAREHOLDER STATUS IN FORCE FROM 1 SEPTEMBER 2013 ......... 268 Employee shareholder status guidance .......................................................................... 268 Government seeks views on further simplification of employee ownership ..................... 268 Expat News ....................................................................................................................... 269 REAL TIME INFORMATION FAQS FOR EXPATS......................................................... 269 UPDATE TO SHORT TERM BUSINESS VISITORS TO UK – PAYE ............................. 269 STATUTORY RESIDENCE TEST – GUIDANCE UPDATED.......................................... 270 PILOT VERSION OF TAX RESIDENCE INDICATOR PUBLISHED ............................... 270

HMRC CONSULTATION - IMPLEMENTING THE UNITED KINGDOM’S AGREEMENTS WITH THE CROWN DEPENDENCIES TO IMPROVE

INTERNATIONAL TAX COMPLIANCE........................................................................... 270 HOW IS YOUR PAYROLL SOFTWARE DEALING WITH APPENDIX 5?....................... 271 Statutory Residence Test – revised guidance note ......................................................... 271 Revised form P85 - Leaving the UK - getting your tax right............................................. 271

CIPP Policy News Journal

16/04/2014, Page 11 of 519

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132 Page 133 Page 134 Page 135 Page 136 Page 137 Page 138 Page 139 Page 140 Page 141 Page 142 Page 143 Page 144 Page 145 Page 146 Page 147 Page 148 Page 149 Page 150 Page 151 Page 152 Page 153 Page 154 Page 155 Page 156 Page 157 Page 158 Page 159 Page 160 Page 161 Page 162 Page 163 Page 164 Page 165 Page 166 Page 167 Page 168 Page 169 Page 170 Page 171 Page 172 Page 173 Page 174 Page 175 Page 176 Page 177 Page 178 Page 179 Page 180 Page 181 Page 182 Page 183 Page 184 Page 185 Page 186 Page 187 Page 188 Page 189 Page 190 Page 191 Page 192 Page 193 Page 194 Page 195 Page 196 Page 197 Page 198 Page 199 Page 200

Made with FlippingBook - Online magazine maker