The Chartered Institute of Payroll Professionals
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“A full review of all tax reliefs would impose significant uncertainty on the tax system, putting revenue at risk and altering business behaviour whilst they waited for such a review to conclude.” “ Costing all tax reliefs is not possible without collecting significant additional data from taxpayers — putting considerable further administrative burdens on them and limiting our overall simplification and admin burden reduction efforts. ”
And;
“ Any regular time-based assessment of whether reliefs should continue to exist creates inherent instability and uncertainty in the latter years of that cycle for all taxpayers claiming or considering claiming a relief. ”
Atkins agrees with t he committee’s intentions, however, does not agree that the proposed solutions are the best use of resources. Do you agree that five-yearly reviews would create uncertainty with you approach to using available tax reliefs?
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Employer NI reliefs review (under 21 and apprentices under 25) Published: 20 October 2023 Emailed: 25 October 2023
HM Revenue and Customs (HMRC) has released research into the use of employer National Insurance (NI) contribution relief for employees under 21 and apprentices under 25.
The aims were to identify if the reliefs have an impact on hiring practices for young people, however we can take some interesting data away from the results as payroll professionals.
The review found that:
• those that operate an inhouse payroll were more likely to be aware they were claiming the relief • payroll software and tax agents are the main reason an employer would be unaware they were claiming the relief • 57% of respondents believe the relief has no direct impact on the business • 34% said it led to increased salaries for apprentices • 29% said they would be more likely to hire young people if the relief was instead delivered via a grant or lump sum.
If you are using an outsourced payroll provider, it may be worth checking that the reliefs are being claimed, as many who operate this way were not aware of what was being done for them.
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Contact HMRC via GOV.UK Published: 20 October 2023 Emailed: 25 October 2023
Did you know? You can contact HM Revenue and Customs (HMRC) via GOV.UK with a click.
There is a feature at the very bottom of every page on GOV.UK. This is very useful for agents, employers and online users.
Select ‘contact’ on the page that you require support on:
cipp.org.uk
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