CIPP Payroll: need to know - 2023-24

The Chartered Institute of Payroll Professionals

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Self Assessment threshold change for 2023/24 Published: 26 May 2023 Emailed: 31 May 2023

Former home secretary, Priti Patel and former lord chancellor and justice secretary, Sir Robert Buckland have called for changes to the current statutory sick pay (SSP) system. They said it should be altered so it helps ill people “get back on their feet a nd back to work”. It's estimated that two million people in the UK aren’t eligible for any sick pay at all. In addition, another ten million individuals are eligible for SSP only, but due to the current rules, don’t receive any sick pay for the first three days of absence. A consultation which looked at potential reforms to SSP, ‘Health is everyone’s business: proposals to reduce ill health - related job loss’ considered making it so that employees who didn’t earn at or above the lower earnings limit would also be eligible for the payments. 75% of respondents to the consultation supported this move but the government confirmed no changes would be made in this sp ace, stating “now is not the right time to introduce changes to the sick pay system”.

Patel and Buckland said:

“The government has an opportunity to grasp the nettle and take forward these popular reforms. A modest investment in supporting those affected by ill heath will save businesses money by reducing the impact and risk of longer-term absence, help efforts to support recruitment, retention and employee morale, and provide a boost to our economy. “The government can be both tough on those who need a nudge to get back into work and compassionate to those who through no fault of their own need time to recover. These simple tweaks to the system would ensure all workers get sick pay from their employer from day one of their illness. Second, we could ensure that every worker can access at least some sick pay from their employer.”

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HMRC set to collect more RTI data from 2025 Published: 21 July 2023 Emailed: 26 July 2023

Following consultation seeking views on the data HM Revenue and Customs (HMRC) collects, a policy paper and has been released detailing the upcoming changes.

HMRC confirms that these changes will not come into effect until the 2025/26 tax year at the earliest. This gives employers time to prepare, but don’t leave it until it’s too late, changes for larger employers may take some time to implement. The regulations will first be used to require further details on employee hours through Real Time Information (RTI) reporting. Additionally, shareholders who are company-owner managers in owner-managed businesses will need to use their Self Assessment tax return to provide:

• the amount of dividend income received from their own companies separately to other dividend income • the percentage share they hold in their own companies.

Self employed individuals will also need to provide the start and end dates of their self employed status on their tax returns.

As HMRC release more information closer to its implementation, we will be here to update you, But start thinking about possible process changes before it is too late.

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