Policy Bi-Monthly Newsletter - September 2016

The Chartered Institute of Payroll Professionals

Policy Bi-Monthly Newsletter – September 2016

HMRC timetable to replace PAYE EDI channel 12 September 2016

Following on from our News update on 29 June HMRC have provided a further written update to the EDI User Group regarding the deadline for re-platforming Electronic Data Interchange (EDI). HMRC will be decommissioning the Electronic Data Interchange (EDI) channel and replacing it with an existing XML service, by April 2018. Current EDI users will need to migrate away from the service before the deadline to the XML channel. This will strategically position all of HMRC’s PAYE operations across the UK on the same platform. HMRC is committed to providing secure and resilient services and this move ensures that any future enhancements and changes can be managed effectively. Plans to make the move were originally announced at the API Strategy Launch Conference, on 7 September 2015, where Mark Dearnley, HMRC’s former CDIO, announced that the Department would end its use of the EDI channel within three years. Background A meeting, held in May, marked the first formal consultation with representatives of the IReeN User Group, the British Computer Society and the Chartered Institute of Payroll Professionals to map user experience and capture pressure/pain points with the existing service. That customer engagement and consultation will continue and expand throughout this project. Through the summer HMRC will be exploring technical options for a solution and engaging with the EDI user group to draw in user feedback/research. HMRC will be drawing out high level requirements and later in the year exploring the end technical solution in consultation with EDI users. Further updates will be forthcoming as the project progresses however in the meantime if you have questions or experiences that you want to share with the EDI user group please contact Samantha Mann, CIPP Senior Policy & Research Officer at Policy . This important, but minor change, will have no effect on individual employees. HMRC is putting a new team in place to provide support for the user community, to help them transition, ahead of the deadline.

Tax fraudster ordered to pay up or face jail 13 September 2016

A self-employed salesman and entertainer had not submitted a Self Assessment return for more than 14 years; HMRC ordered him to pay back £53,498 or face 12 months in jail.

HMRC found that Jeffrey Alan Brown, 51, a self-employed salesman and entertainer, had not submitted a Self Assessment return for more than 14 years. This was despite earning more than £300,000 in sales commission from a glazing company and £6,900 as a football match entertainer.

Brown was ordered to pay back £53,498, which included interest, within three months or he will face 12 months in jail.He had previously been sentenced for tax fraud in April 2016.

The HMRC investigation showed that between 2009 and 2015, Brown had been a successful sales representative for Safestyle UK, featuring in the company’s TV advertising earning him £300,000 in untaxed sales commission.

Brown had signed an employment agreement with the window company, agreeing to be responsible for his own Income Tax and National Insurance contributions, but instead chose not to declare his earnings to HMRC. He owed £50,000 for tax returns from February 2009 onwards. He also worked as an entertainer, using the trading name Brown Loaf Entertainment, as a match host for several football clubs including Burnley Football Club, Accrington Stanley Football Club and Wigan Warriors Rugby League Football Club. But he stopped submitting tax returns from 2001 and never registered the business for legitimate trading, pocketing all the cash he charged the clubs for his services. HMRC also discovered that he used a fake home address on his employment records in an attempt to evade detection and taxes.

Anyone with information regarding fraud is encouraged to contact the Customs Hotline on 0800 59 5000 or report it online .

cipp.org.uk

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