Security deposit legislation
To ensure the collection of debt in cases of insolvency, the government is expanding the security deposit legislation to cover Construction Industry Scheme (CIS) deductions. The change, which will take effect from 6 April 2019, will be included in Finance Bill 2018-19 and there will be a consultation on its implementation.
Tax avoidance and evasion
Further measures
The government has introduced over 100 measures to tackle tax avoidance, evasion, non-compliance and aggressive tax planning between 2010 and 2017. Published alongside the Budget is a policy paper which includes the work that has taken place but also details the 18 further measures announced at Autumn Budget 2017. New measures include extending HMRC’s powers to hold online marketplaces jointly and severally liable for the unpaid VAT of all traders on their platforms. These further measures and additional investment in HMRC are forecast to raise a further £4.8 billion between now and 2022-23.
Disguised remuneration
The government will tackle disguised remuneration avoidance schemes used by close companies – companies with five or fewer participators – by introducing the close companies’ gateway, revised following consultation, and measures to ensure liabilities from the new loan charge are collected from the appropriate person. Further details can be found in the policy paper published alongside the Budget.
Other areas of interest
Apprenticeship levy Just a very small mention that the government will continue to work with employers on how the apprenticeship levy can be spent, so that the levy works effectively and flexibly for industry, and supports productivity across the country. Employee expenses HMRC will work towards improving the guidance on the process of claiming employee expenses, in particular for claiming tax relief on non-reimbursed employment expenses, and on travel and subsistence. Subsistence benchmark scale rates From April 2019, receipts for subsistence reimbursement will no longer need to be checked by employers. Also, the concessionary accommodation and subsistence overseas scale rates will become statutory. Both of these measures will save time and provide clarity for employers. Public sector pay In September 2017 the government announced its intention to move away from the 1% basic public sector pay award policy. For those workforces covered by an independent Pay Review Body (PRB), the relevant Secretary of State will shortly write to the PRB Chair to initiate the 2018-19 pay round, before later submitting detailed evidence outlining recruitment and retention data and reflecting the different characteristics and circumstances of their workforce. Each PRB will then make its recommendations in the spring or summer and Secretaries of State will make final decisions on pay awards, taking into account their affordability. Taylor Review of Modern Working Practices The government will publish a discussion paper as part of the response to Matthew Taylor’s review of employment practices in the modern economy, exploring the case and options for longer-term reform to make the employment status tests for both employment rights and tax clearer. The government recognises that this is an important and complex issue, and so will work with stakeholders to ensure that any potential changes are considered carefully.
CIPP comment Matthew Taylor made several recommendations in this review which would have an impact on payroll practices and processes. The CIPP will be submitting a response to the discussion paper when it is published.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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