A technical consultation has been published on secondary legislation to reduce administrative burdens by simplifying the PAYE Settlement Agreement process from April 2018.
From 6 April 2018, the PAYE (Pay As You Earn) Settlement Agreement (PSA) process will be simplified through removing the current requirement on employers to renew their PSA annually, and providing for an ‘enduring agreement’.
Changes to the Income Tax (PAYE) Regulations 2003 are required to enable this and draft legislation has been published for a short period of technical consultation (closes at 11:45pm on 21 February 2018).
The draft legislation introduces the concept of a PSA being an ‘enduring’ agreement. This agreement will continue to remain in place for each subsequent tax year until varied or cancelled, either by the employer, or HMRC. This simplification removes the need for an upfront annual agreement for employers who wish to use this option.
Further changes will allow PSA applications to be processed electronically without the need for agreement with an officer of HMRC, if and when digital processes are introduced.
Geographical extent - United Kingdom
CIPP comment With such a short consultation period we are unable to fully consult members and the wider payroll profession. If any interested parties have comments, we will be more than happy to collate and pass on to HMRC. Please email us at policy by 10am on 21 February, using PSAs in the subject box.
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Scottish income tax rates and bands confirmed for 2018-19 22 February 2018
The rates and thresholds proposed by the Scottish Government have been approved by the Scottish Parliament and will take effect from 6 April 2018.
2018-19
Scottish rate
Rest of UK rate
19% (if you earn between £11,850 and £13,850 20% (if you earn between £13,851 and £24,000) 21% (if you earn between £24,001 and £43,430) 41% (if you earn between £43,431 and £150,000)
Starter rate
N/A
20% (if you earn between £11,851 and £46,350)
Basic rate
Intermediate rate
N/A
40% (if you earn between £46,351 and £150,000 45% (if you earn over £150,000**)
Higher rate
46% (if you earn over £150,000)
Top rate
These figures assume individuals are in receipt of the standard UK personal allowance. Those earning more than £100,000 will see their personal allowance reduced by £1 for every £2 earned over £100,000.
Pension schemes relief at source
The Chartered Institute of Payroll Professionals
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