We do hope to see consultation forums set up for the future ‘simplification and streamlining’ with the intention of ‘action’ and not to ‘make sure nothing happens’. The CIPP policy team will of course be involved at every stage.
Karen Thomson has written a full summary of the report which can be read in the April issue of the CIPP magazine; PayrollProfessional which is available to read online now.
Budget 2013
20 March 2013
Dare we say it, the Budget turned out to be quite exciting; well in the CIPP policy world anyway. After the stop, start in the school playground, finally the Deputy Head Teacher (the Deputy Speaker) brought the children (MPs) to order. Mr Osborne congratulated the Coalition on their successes much to the bemusement of the Opposition. Osborne started the budget with the statement “that this budget is aimed at people who work hard and want to get on”. Clearly after working hard those who like a tipple, well beer anyway, will find their pennies will stretch just that little bit further.
For those of us worried by the previously announced September fuel duty increase the Chancellor confirmed that not only would it not be introduced but cancelled altogether.
For those fortunate enough to be in the payroll industry there were some surprising and long awaited wins such as the massive increase in the beneficial loans rate, and confirmation that the admin burdens are not set reduce for us anytime soon! Osborne confirmed that the public sector will once again have pay restrictions to no more than 1% but it is good news for our armed services who will not feel this restriction and instead the government accepted the Armed Forces Pay Review recommendations. Not surprisingly the Chancellor has made some deals with tax advantageous countries to tackle further tax avoidance; naming and shaming with no safe havens! Tax advisors who help individuals and or businesses to find tax avoidance schemes will not escape he said!
Confirmation of the penalty regime in respect of real time information is also included in the Budget documentation.
The key areas affecting the payroll industry can be found below, but until then if you would like many hours of light, bed-time reading click here for the full suite of Budget papers.
Main Budget Summary
Employment Allowance for businesses The government will introduce for all businesses and charities a £2000 allowance per year from April 2014. This will be offset against the employer National Insurance liability. It will be reclaimed via the payroll returns submitted via real time information.
CIPP comment: The government confirmed they intend to discuss how this will work and any implications for payroll with stakeholders after the budget announcement. The CIPP will of course be involved with this consultation work and will advise the profession on the changes required as soon as possible. This will of course have a major impact for payroll software developers and the RTI specifications!
CIPP Policy News Journal
16/04/2014, Page 44 of 519
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