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Policy team update
The CIPP’s policy and research teamprovide an update on developments
T he CIPP’s policy and research us to put forward the views of the payroll profession in relation to potential new government policy. It also gives the opportunity to discuss what is working well and, conversely, what is not working as effectively in the payroll sphere. Activity in the consultation space has continued, despite the outbreak of coronavirus, with meetings being held on a virtual basis. team are involved in a variety of consultation forums, which allows TPR Professional Body Working Group The Pensions Regulator (TPR) hosted a meeting in September to provide stakeholders with a corporate update, in addition to information relating to their auto-enrolment (AE) and ScamSmart campaigns. Attendees, all joining from different professional bodies, were then invited to detail what activity they and their respective organisations had been undertaking throughout the duration of the pandemic. Key focus was placed on the change to the deadline for reporting outstanding payments, as due to Covid-19 a temporary easement was applied to this, and the deadline increased to 150 days, as opposed to the ordinarily observed 90. TPR explained that, from 1 January 2021, it will be asking businesses to revert back to the previous process of reporting payment failures within 90 days. From 1 April 2021, this will become mandatory. Concern was voiced within the group due to the threat of a looming ‘second wave’
of coronavirus, and questions asked about what will happen beyond next year. As always, TPR wanted to emphasise the prevalence of pension scams, particularly given the current turbulent circumstances in which people are finding themselves, where it may feel like the most immediate solution is the correct one. There was a reminder that decisions around pensions should not be rushed, and a qualified advisor should be contacted where possible. TPR, together with the Financial Conduct Authority, promotes the ScamSmart campaign, which provides advice around pension scams, in terms of how to identify and subsequently avoid them, to protect savings for retirement. The resounding message was that TPR would like stakeholders to ensure that they continue communicating with members and signposting them to the wealth of information that is available on the topic of pension scams. All attendees confirmed that the last few months have been unprecedentedly extremely busy, with the majority confirming that their business offered a coronavirus hub on their website, and that members have been updated of any relevant information via news stories online. Several individuals explained that they were responding to the Treasury’s recently published call for evidence which seeks evidence to support, or otherwise, the possible solutions put forward by HM Treasury and HM Revenue & Customs (HMRC) to resolve the social unfairness issue arising for certain low earners who
are members of a net pay arrangement (NPA) pension scheme that results in them not receiving the benefit of tax relief on their pension contributions.
Collection of Student Loans Consultation Group
At the recent meeting of this group it was pleasing to hear that the feedback gained from members regarding the starter checklist had been taken on board. The group were advised that the positioning on the checklist of the ‘please note’ text would be moved in line with the feedback received. Thank you to those who submitted feedback on the checklist – the team were extremely grateful for all of the comments. Employers are reminded that the intent to introduce a new student loan plan for Scottish learners will go ahead as planned in April 2021. New plan 4 will result in an increase to the Scottish loan threshold to £25,000 before repayment deductions of 9% are taken. It is estimated that this will affect around 5,000 employees; and we await further confirmation of how this information will be sent out to employers. HMRC advised that after reconciliation some employers have overpaid student loans and, in response, the department has been writing to those concerned requesting banking details so that refunds can be made. During this period especially, we have seen multiple scams in which fraudsters pose as HMRC in attempts to defraud the public. We were asked to inform employees that these letters are genuine and can be actioned, but if in any doubt they can log onto their student loan account to confirm the overpayment. A reminder that the student loan thresholds for the tax year 2021/22 have been confirmed.
...businesses to revert back to the previous process of reporting payment failures within 90 days.
| Professional in Payroll, Pensions and Reward | November 2020 | Issue 65 6
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