The Chartered Institute of Payroll Professionals
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This is the twelfth consecutive rise since December 2021. The Bank of England’s Monetary Policy Committee (MPC) agreed the rise to meet the target set by the government to keep inflation low and stable. Inflation has been in the double digits currently standing at 10.1%. The MPC voted seven to two in favour of raising to 4.5%, with two members voting to maintain the bank rate at 4.25%.
Payroll professionals should bear in mind that due to this change, HM Revenue and Customs (HMRC) will uplift and revise the late payment and repayment interest rates in accordance with their guidance.
Keep a look out for the next update due on the 22 June 2023.
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Residency for Jersey income tax Published: 22 May 2023 Emailed: 24 May 2023
Information about residency for Jersey income tax including short term contracts, available accommodation, leaving Jersey and returning to Jersey can be accessed here.
Even though Jersey is generally considered to be part of the UK, it is important to bear in mind that it is self-governing and has its own tax and social security laws. This has an impact on payroll and therefore needs to be handled differently from payrolls based in the UK. Most people who live, work and spend all their time in Jersey, except for short visits abroad on business or holiday, are resident and ordinarily resident in Jersey for tax. This means that tax must be paid on all income from both Jersey and non-Jersey sources. The information available, will help determine if tax residency is different to this particular position.
There are three types of residency status that can apply to an individual. These are: • resident and ordinarily resident • resident but not ordinarily resident • non-resident. In addition, residency status for the purposes of income tax depends on: • the length of the visit • the frequency of the visits • availability of accommodation in Jersey.
Payroll professionals can enrol onto the CIPP’s interactive e -learning training course, designed specifically to show how to process a payroll for Jersey. Register by clicking here.
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Paternity leave: reforming existing entitlements Published: 23 May 2023 Emailed: 24 May 2023
In 2019, the government opened a consultation called ‘ Good Work Plan: Proposals to support families ’. A section on parental leave and pay was included, which set out high level options for reforming existing entitlements which could help parents to balance the gender division of parental leave.
The government conveyed that it is committed to making it easier for fathers to take paternity leave. The consultation closed on 29 November 2019 and the government is currently considering responses to the consultation.
Lilian Greenwood, Labour MP for Nottingham South, put a question to the government:
‘‘What recent steps her Department has taken to improve access to paternity leave.’’
In response, Kevin Hollinrake, Conservative MP for Thirsk and Malton answered:
‘‘As set out in the 2019 Manifesto, the Government is committed to making Paternity Leave easier to take.
cipp.org.uk
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