6.1 In both the exit payment recovery and exit payment cap reforms, the government position has been that the reforms would apply to those areas which are the responsibility of the UK government. It would be for the Scottish government, Welsh government and Northern Ireland executive to determine if and how they wanted to take forward similar arrangements in relation to devolved bodies and workforces. 6.2 The government will take the same approach to cross-public sector exit payment reform. It will be for the Scottish government, Welsh government and Northern Ireland government to decide individually whether each should set a framework, with a view to seeking agreement on revised exit terms for devolved workforces. Should the government ultimately decide that primary legislation is required in taking forward further reforms, the UK government would request Legislative Consent Motions from the Devolved Administrations where appropriate, which would give the relevant Administration the option of including devolved workforces and schemes under any legislation the UK government brings forward.
6.3 However, if and when a Legislative Consent Motion is required, it would be for the Devolved administrations themselves to decide whether this is a desirable approach.
CIPP comment The government’s expectation is that the necessary changes be made to compensation schemes and other arrangements within nine months of the publication of their consultation response. That brings us to June 2017. Bearing in mind that this is not a legislative requirement, have all relevant departments actually had these discussions and agreed to implement the necessary changes? Watch out for a future quick poll on this subject but in the interim please email us at policy if you have any comments or feedback.
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Tax on payments to foreign entertainers and sportspersons 1 August 2017
Guidance has been updated to clarify the types of entertainers and sportspersons that must pay withholding tax.
If you pay someone who doesn’t live in the UK for making an appearance or performing in the UK, you must deduct tax if the total payment exceeds the personal tax allowance threshold. This is called withholding tax. It’s a payment on account against the entertainer or sportsperson’s final UK tax bill. Even if the payment is made through a third party, you must still deduct withholding tax. Guidance update The Records of Payment section has been updated to advise that all payments made to non-resident entertainer or sportspersons must be reported. The Reduced Tax Payment Application section has been updated to show when you're eligible to make a Reduced Tax Payment Application.
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HMRC to issue late filing PAYE penalty notices in September 2017 18 August 2017
HMRC have confirmed they will continue to take a risk-based approach to late filing of PAYE penalties following a review into their effectiveness.
The first penalties to be issued for late filing for the tax year beginning 6 April 2017 will be in September 2017.
HMRC confirmed in the August edition of the employer bulletin that by continuing to adopt a risk based approach rather than automatically issuing penalty notices they will be able to focus on ‘penalising those who persistently pay late and are or greater risk’.
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The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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